Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Retail Gasoline Pricing: What Do We Know?

Retail Gasoline Pricing: What Do We Know?

Federal Trade Commission

Paperback

Business General

ISBN10: 1502494191
ISBN13: 9781502494191
Publisher: Createspace
Published: Sep 25 2014
Pages: 62
Weight: 0.37
Height: 0.16 Width: 8.50 Depth: 11.00
Language: English
We examine retail gasoline station pricing using three years of weekly prices for 272 stations in the Virginia suburbs of Washington, DC. We report a number of new empirical findings about station level pricing and describe how these findings relate to existing models of retail pricing. First, we find retail margins change substantially over time (by more than 50%) while the shape of the margin distribution remains relatively constant. Second, the distribution of retail gasoline prices has relatively thick tails. Third, stations frequently change their relative prices and margins. Fourth, there is substantial heterogeneity in pricing behavior: stations charging very low or high prices are more likely to maintain their pricing position than stations charging prices near the mean, even when controlling for permanent differences in marginal costs.

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