Why Are Prices Sticky? The Dynamics of Wholesale Gasoline Prices

The menu-cost interpretation of sticky prices implies that the probability of a price change should depend on the past history of prices and fundamentals only through the gap between the current price and the frictionless price. We find that this prediction is broadly consistent with the behavior of 9 Philadelphia gasoline wholesalers. We nevertheless reject the menu-cost model as a literal description of these firms' behavior, arguing instead that price stickiness arises from strategic considerations of how customers and competitors will react to price changes.

From classroom tutor to hypertext adviser: An evaluation

This paper describes a three‐year experiment to investigate the possibility of making economies by replacing practical laboratory sessions with courseware while attempting to ensure that the quality of the student learning experience did not suffer. Pathology labs are a central component of the first‐year medical undergraduate curriculum at Southampton. Activities in these labs had been carefully designed and they were supervised by lab demonstrators who were subject domain experts. The labs were successful in the eyes of both staff and students but were expensive to conduct, in terms of equipment and staffing. Year by year evaluation of the introduction of courseware revealed that there was no measurable difference in student performance as a result of introducing the courseware, but that students were unhappy about the loss of interaction with the demonstrators. The final outcome of this experiment was a courseware replacement for six labs which included a software online hypertext adviser. The contribution of this work is that it adds to the body of empirical evidence in support of the importance of maintaining dialogue with students when introducing courseware, and it presents an example of how this interaction might be achieved in software

Environmental Regulations and the Increasing Seasonality of Gasoline Prices

We analyze gasoline prices over the past 27 years and find that there has been an increase in the seasonal variation since 2000. This finding is attributed to an increase in the environmental regulations on gasoline during the summer months

The Dynamics of Daily Retail Gasoline Prices

Previous research has analyzed the behavior of retail gasoline stations in how they adjust their prices. In this paper we analyze the daily movements in prices of four retail gasoline stations located in Newburgh, New York. We find some evidence to support the notion that the behavior is explained by menu costs. There is substantial evidence that the firms adjust their prices asymmetrically, being more inclined to increase than to decrease prices. We conclude that the pricing behavior is being determined by a combination of search costs for the consumers and menu costs for the producers. Copyright © 2007 John Wiley & Sons, Ltd