Rockets and Feathers in Germany's Gasoline Market: The Eect of Increased Market Transparency

摘要

1. Drawing on a theoretical search cost model we have tested whether theadjustment of retail prices to a negative cost shock will be faster, if the netexpected benet of acquiring information increases.21. Prior to the portal's introduction positive asymmetry prevailed, with pricesfollowing the rockets-and-feathers pattern frequently documented for retailfuel markets.3. In the aftermath of the portal's introduction negative asymmetry isobserved.4. This reversal in price pass-through suggests that the portal achieved aprinciple aim of generating welfare gains for consumers.