Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/228748 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
DICE Discussion Paper No. 359
Publisher: 
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Düsseldorf
Abstract: 
This paper studies the relationship between retail gasoline pricing strategies and potential demand. Utilising detailed data on traffic on the German Autobahn and the special case of Bundesautobahntankstellen, the interaction between demand and price competition is studied, as are the changes in competition intensity across distances and road networks. The observed relationships match an Edgeworth cycling behaviour, whose steps appear to be determined by the changes in demand. Cycling intensity and undercutting increase with traffic, while relenting phases are timed to substantial changes in traffic ows. Thus, competition is found to intensify with rising potential demand, as that increases the incentives of undercutting.
Subjects: 
Retail gasoline prices
Edgeworth Cycles
Regional Infrastructure
Price Competition
JEL: 
D22
D40
L11
L81
R12
ISBN: 
978-3-86304-358-2
Document Type: 
Working Paper

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