Nguyen, Foros and Steen on "gasoline price cycles"
In a recent column on VOXEU, Øystein Foros, Mai Nguyen-Ones and Frode Steen wrote a column on "gasoline price cycles"
Many markets exhibit saw-tooth pricing, with retailers regularly cutting and restoring prices. The column uses the discounting pattern of Norwegian gas stations, which uniformly raise prices on two days a week, to show the effect on consumer behaviour and firm profits. When more consumers spend effort on when to buy rather than where to buy, competition softens.
The full article can be found on VOXEU.org.