The shape and frequency of Edgeworth price cycles in an Australian retail gasoline market
Gasoline prices in many markets follow a saw-toothed pattern known as an Edgeworth Cycle. Lewis (2009) introduces a novel way of measuring the shape of the cycle, the median change in price, and regresses this against a number of explanatory variables in US markets. Here, we undertake a similar regr...
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| Format: | Working Paper |
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Centre for Research in Applied Economics, Curtin Business School
2010
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| Online Access: | http://hdl.handle.net/20.500.11937/30596 |
| Summary: | Gasoline prices in many markets follow a saw-toothed pattern known as an Edgeworth Cycle. Lewis (2009) introduces a novel way of measuring the shape of the cycle, the median change in price, and regresses this against a number of explanatory variables in US markets. Here, we undertake a similar regression analysis, but using data from Perth, Australia, and with a novel measure of market structure as a regressor. We also explore a novel measure, based on spectral analysis, of the use of cycles in a mixed strategy, and the factors which drive this use. |
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