Abstract
➤ Multiple regression analysis utilizing easily acquired data is used to estimate dynamic cross-elasticity coefficients and the carry-over effect of short duration price differentials on like grades of gasoline at competing service stations. In spite of low coefficients of determination, four of five replications of the model produced highly consistent results indicating (1) that the first day cross-elasticity coefficient is algebraically less than minus one, (2) the effect increases on subsequent days of the differential, and (3) there is little or no carry-over effect once prices are made equal.
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