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How Have COVID-19 Case Rates Impacted Retail Gasoline Price Markups? Evidence From Daily Prices and Transportation Choices

Author

Listed:
  • Chintamani Jog
  • Travis Roach

    (Economics, University of Central Oklahoma, USA)

Abstract

Retail gasoline sales generally take place in an incredibly competitive environment with highly visible prices, many competitors, and homogeneous goods. Here, we show how price–cost margins have changed in an era of drastic changes to transportation choices. We find that increasing COVID-19 case rates have increased firms’ market power in the retail gasoline sector, effectively halving the station-level price elasticity of demand.

Suggested Citation

  • Chintamani Jog & Travis Roach, 2021. "How Have COVID-19 Case Rates Impacted Retail Gasoline Price Markups? Evidence From Daily Prices and Transportation Choices," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-5.
    • Handle: RePEc:ayb:jrnerl:52
    DOI: 2021/11/02
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    gasoline demand; state regulation; covid-19; competition;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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