*Edgeworth Price Cycles: Evidence from the Toronto Retail Gasoline Market

24 Pages Posted: 11 Apr 2007

Multiple version iconThere are 2 versions of this paper

Abstract

I exploit a new station-level, twelve-hourly price dataset to examine the strong retail price cycles in the Toronto gasoline market. The cycles appear similar to theoretical Edgeworth Cycles: strongly asymmetric, tall, rapid, and highly synchronous across stations. I test a series of predictions made by the theory about how firm behaviors would differentially evolve over the path of a cycle. The evidence is consistent with the existence of Edgeworth Cycles and inconsistent with competing hypotheses. While the cycles are an interesting phenomenon for study in their own right, the evidence has important policy and welfare implications.

Suggested Citation

Noel, Michael D., *Edgeworth Price Cycles: Evidence from the Toronto Retail Gasoline Market. Journal of Industrial Economics, Vol. 55, No. 1, pp. 69-92, March 2007, Available at SSRN: https://ssrn.com/abstract=978638 or http://dx.doi.org/10.1111/j.1467-6451.2007.00303.x

Michael D. Noel (Contact Author)

Texas Tech University ( email )

237 Holden Hall
Box 41014
Lubbock, TX 79407
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
20
Abstract Views
725
PlumX Metrics