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The rockets and feathers hypothesis: an application to gasoline prices in Fiji

Rao, Bhaskara B. and Rao, Gyaneshwar (2006) The rockets and feathers hypothesis: an application to gasoline prices in Fiji. Institute of Chartered Financial Analysts of India (ICFAI) Journal of Applied Economics, 5 (5). pp. 67-71. ISSN 0972-6861

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Abstract

Bacon (1991) labeled asymmetric price adjustments in the oligopoly markets as the rockets and feathers hypothesis where firms increase prices faster than decrease in response to changes in costs and market conditions. In this paper, the authors test this hypothesis for the gasoline market in Fiji and show that there are asymmetric price adjustments. It is found that oil firms in Fiji increase gasoline prices twice faster.

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Neha Harakh
Date Deposited: 17 Mar 2006 13:13
Last Modified: 14 May 2012 16:47
URI: http://repository.usp.ac.fj/id/eprint/3934
UNSPECIFIED

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