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The Consumer’s Micro-Micro Gasoline Buying Decision

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  • Jannett Highfill
  • Michael McAsey

Abstract

A “micro-micro” consumer problem of gasoline purchases is examined using daily price data. Comparing the optimizing consumer with one who buys gasoline at random, the paper finds optimizers save about 4% of their annual gasoline bill. The paper also provides some evidence about the costs of non-optimal gasoline buying strategies. Copyright International Atlantic Economic Society 2007

Suggested Citation

  • Jannett Highfill & Michael McAsey, 2007. "The Consumer’s Micro-Micro Gasoline Buying Decision," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(4), pages 433-442, November.
    • Handle: RePEc:kap:iaecre:v:13:y:2007:i:4:p:433-442:10.1007/s11294-007-9108-9
    DOI: 10.1007/s11294-007-9108-9
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    References listed on IDEAS

    as
    1. Nicol, C. J., 2003. "Elasticities of demand for gasoline in Canada and the United States," Energy Economics, Elsevier, vol. 25(2), pages 201-214, March.
    2. Espey, Molly, 1998. "Gasoline demand revisited: an international meta-analysis of elasticities," Energy Economics, Elsevier, vol. 20(3), pages 273-295, June.
    3. Kui-Yin Cheung & Elspeth Thomson, 2004. "The Demand for Gasoline in China: A Cointegration Analysis," Journal of Applied Statistics, Taylor & Francis Journals, vol. 31(5), pages 533-544.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Tilov, Ivan & Weber, Sylvain, 2023. "Heterogeneity in price elasticity of vehicle kilometers traveled: Evidence from micro-level panel data," Energy Economics, Elsevier, vol. 127(PA).

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    More about this item

    Keywords

    Gasoline; Consumer; Value of information; Q40;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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