Economics of information and retail gasoline price behavior: an empirical analysis

Journal Article · Fri Oct 01 04:00:00 EDT 1976 · J. Polit. Econ.; (United States)

DOI:https://doi.org/10.1086/260495· OSTI ID:7328641

Marvel, H P

This paper provides empirical results which indicate that consumer responses to imperfect, costly information have an important impact on price behavior in the retail gasoline market. Two aspects of price behavior are investigated: the market price dispersion at a point in time and the variability of price over time. Through use of a multiple-regression cross-city analysis of price behavior, both of these characteristics are shown to depend on a set of proxy variables representing the benefits and costs to consumers of acquiring information. In addition, prices vary more within a given city at stations catering to relatively well-informed customers. 22 references.

• Research Organization: Ohio State Univ., Columbus
• OSTI ID: 7328641
• Journal Information: J. Polit. Econ.; (United States), Journal Name: J. Polit. Econ.; (United States) Vol. 84:5; ISSN JLPEA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
CHARGES
COST
ECONOMIC ELASTICITY
ECONOMICS
FUELS
GASOLINE
INFORMATION
MARKET
PETROLEUM PRODUCTS