<p>I am looking for studies in which the effect on demand of different prices of gasoline at different gas stations  in the same area is measured or estimated (on the same day or hour).</p>

<p>This question has to do with <a href="https://en.wikipedia.org/wiki/Price_elasticity_of_demand" rel="nofollow noreferrer">price elasticity</a>. Since gasoline is strongly needed on a daily basis in equal amounts by many people, its price elasticity is quite low and <a href="https://www.eia.gov/todayinenergy/detail.php?id=19191" rel="nofollow noreferrer">estimated to be in the range of -0.02 to -0.04 in the short term</a>.</p>

<p>But I want to look a bit deeper: Can (and were) the effect on demand of different prices of gasoline at different gas stations in the same area be measured? </p>

CC BY-SA 4.0
2019-11-10T02:23:51.223Z
Not sure about sales data... Just wanna add that one thing I thought of doing a while ago is looking at gas stations at the state border (say CA and NV). That should give you more price difference.
Art
CC BY-SA 4.0
2019-11-10T06:39:55.390Z
@Art:  I'm not looking for the price differences itself but on their effect on demand (i.e. sold quantities).
Hans-Peter Stricker
CC BY-SA 4.0
2019-11-10T07:03:45.130Z
I guess what I was trying to say is that the greater price difference would give you potentially greater quantity sold difference. As you said, gas demand is pretty inelastic, so a difference of 1 or 2 cents might not give you any difference in quantity demanded.
Art
CC BY-SA 4.0
2019-11-10T07:14:55.240Z
@Art: Ah, very good point!
Hans-Peter Stricker
CC BY-SA 4.0
2019-11-10T10:59:02.837Z
@Art: Are price differences considerably greater between states (not so in Germany, I guess)?
Hans-Peter Stricker
CC BY-SA 4.0
2019-11-10T11:32:10.963Z
See, for example, here: https://www.gasbuddy.com/GasPriceMap
Art
<reference-request><elasticity><price><oil>
Can the effect of different prices of gasoline at different gas stations be measured?
Hans-Peter Stricker
# Can the effect of different prices of gasoline at different gas stations be measured?

(Asked by: username_0 on 2019-11-09)

I am looking for studies in which the effect on demand of different prices of gasoline at different gas stations in the same area is measured or estimated (on the same day or hour).

This question has to do with [price elasticity](https://en.wikipedia.org/wiki/Price_elasticity_of_demand). Since gasoline is strongly needed on a daily basis in equal amounts by many people, its price elasticity is quite low and [estimated to be in the range of -0.02 to -0.04 in the short term](https://www.eia.gov/todayinenergy/detail.php?id=19191).

But I want to look a bit deeper: Can (and were) the effect on demand of different prices of gasoline at different gas stations in the same area be measured?

**Tags:** reference-request, elasticity, price, oil

> **Comments:**
> **username_1**: Not sure about sales data... Just wanna add that one thing I thought of doing a while ago is looking at gas stations at the state border (say CA and NV). That should give you more price difference.  
> **username_0**: @username_1:  I'm not looking for the price differences itself but on their effect on demand (i.e. sold quantities).  
> **username_1**: I guess what I was trying to say is that the greater price difference would give you potentially greater quantity sold difference. As you said, gas demand is pretty inelastic, so a difference of 1 or 2 cents might not give you any difference in quantity demanded.  
> **username_0**: @username_1: Ah, very good point!  
> **username_0**: @username_1: Are price differences considerably greater between states (not so in Germany, I guess)?  
> **username_1**: See, for example, here: https://www.gasbuddy.com/GasPriceMap  

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## 0 answers

