Characteristics, causes, and price effects: Empirical evidence of intraday Edgeworth cycles

Arbeitspapier

Edgeworth cycles represent the leading concept to explain observed pricing patterns on retail gasoline markets and have been subject to numerous empirical investigations on an interday level. In this paper, I present unique evidence of the presence, causes, and price effects of intraday Edgeworth-type cycles for an entire OECD country, using high-frequency price data from German gasoline stations. I find vast evidence of intraday cycles across municipalities in Germany. Cycle asymmetry and intensity is stronger in more concentrated markets and decreases with a higher share of non-major brands. My analysis suggests that intraday cycles are a sign of competition with a price decreasing effect during evening hours, where consumers conscious of their purchase timing can benefit most.

Object Details

• ISBN: 978-3-86304-251-6
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DICE Discussion Paper ; No. 252

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Mining, Extraction, and Refining: Hydrocarbon Fuels
• Subject: Gasoline Markets ; Fuel Prices ; Edgeworth Cycles ; Intraday Pricing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Siekmann, Manuel
• Event: Veröffentlichung
• (who): Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
• (where): Düsseldorf
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/161673
• Last update: 10.03.2025, 11:41 AM CET