How to Reach the Paradise? Inside the Edgeworth Cycle and Why a Gasoline Station Is the First to Raise Its Price
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In: Journal of Industrial Economics, 2025.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - How to Reach the Paradise? Inside the Edgeworth Cycle and Why a Gasoline Station Is the First to Raise Its Price
AU - Kahl, Mats
AU - Wein, Thomas
N1 - Publisher Copyright: © 2025 The Author(s). The Journal of Industrial Economics published by The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd.
PY - 2025
Y1 - 2025
N2 - Competition in gasoline retailing is characterized by intraday price cycles in local markets worldwide. The literature describes these as corresponding to the well-known Edgeworth cycles. Previous research has mainly focused on analyzing cycles based on hourly, daily, or weekly average price data. We study the cycle initiation based on second-by-second data for one German town. We find that price considerations are not the main factors in determining which retailers raise prices first, how much they raise them, or whether they succeed. Brand affiliation is more important, and to a lesser extent, so are the services offered and location parameters.
AB - Competition in gasoline retailing is characterized by intraday price cycles in local markets worldwide. The literature describes these as corresponding to the well-known Edgeworth cycles. Previous research has mainly focused on analyzing cycles based on hourly, daily, or weekly average price data. We study the cycle initiation based on second-by-second data for one German town. We find that price considerations are not the main factors in determining which retailers raise prices first, how much they raise them, or whether they succeed. Brand affiliation is more important, and to a lesser extent, so are the services offered and location parameters.
KW - Economics
KW - Tankstellen
KW - Preispolitik
KW - Edgeworth Cycle
KW - Gasoline prices ·
KW - Gasoline market
KW - Dynamic pricing
UR - http://www.scopus.com/inward/record.url?scp=105000818958&partnerID=8YFLogxK
U2 - 10.1111/joie.12412
DO - 10.1111/joie.12412
M3 - Journal articles
AN - SCOPUS:105000818958
JO - Journal of Industrial Economics
JF - Journal of Industrial Economics
SN - 0022-1821
ER -