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Consumer Search in Retail Gasoline Markets

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Journal of Industrial Economics

Published online on

Abstract

This paper develops direct tests for search behavior in retail gasoline markets. We exploit a unique market‐level dataset that allows us to directly measure search intensity with daily web traffic data from a gasoline price reporting website and perfectly measure daily changes in price levels and dispersion. Our simple yet powerful tests provide strong evidence of both cross‐sectional and intertemporal price search.