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U.S. Midwest Gasoline Pricing and the Spring 2000 Price Spike

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Author Info

  • Jeremy I. Bulow
  • Jeffrey H. Fischer
  • Jay S. Creswell, Jr.
  • Christopher T. Taylor
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    Abstract

    Gasoline prices increased dramatically in the U.S. Midwest in the summer of 2000, generating allegations of collusion among gasoline marketers. We examine the causes of the price increase, and find no evidence to support the collusion story. Instead, a combination of industry characteristics and unanticipated problems in switching to a new, federally-mandated gasoline specification caused the spike. Once prices rose, firms responded as quickly as possible to get additional supplies to affected markets.

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    Bibliographic Info

    Article provided by International Association for Energy Economics in its journal The Energy Journal.

    Volume (Year): Volume24 (2003)
    Issue (Month): Number 3 ()
    Pages: 121-149

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    Handle: RePEc:aen:journl:2003v24-03-a05

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    Cited by:
    1. Deck, Cary A. & Wilson, Bart J., 2008. "Experimental gasoline markets," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 134-149, July.

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