Does Volatile Demand Induce Volatile Prices? Evidence from the German Gasoline Market
Does Volatile Demand Induce Volatile Prices? Evidence from the German Gasoline Market
Period:
01.08.2020 – 31.12.2022
The objective of this research project is to examine the relationship between demand and price volatility in the retail gasoline industry. We study to what extent can demand shocks explain the daily price volatility of retail gasoline prices. For that purpose, we analyze the intraday pricing behavior of retail gasoline stations using a unique self-built dataset of station characteristics, station level gasoline prices, and live traffic speed levels.
