Price Responses to Seasonal Demand Changes in the Swedish Gasoline Market
The demand for gasoline in Sweden follows a seasonal cycle. The paper investigates the response in prices and profits over the cycle. In contrast to what has been found for the gasoline market in the United States, we find no support for seasonal price changes compatible with the theories for cyclical variations of intensity of competition. We also investigate whether the effects on margins of the demand fluctuations induced by tax increases are compatible with these theories and find this not to be the case. Some possible explanations for this difference between Sweden and the United States are discussed.
|Date of creation:||09 Nov 2001|
|Date of revision:||20 Dec 2001|
|Contact details of provider:|| Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden|
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