Rockets, Feathers and Gasoline Prices

Gasoline prices rise faster than they fall because monopolistic competition provides retailers with some price control although their product is identical.

Up Like a Rocket, Down Like a Feather

At your local gas station, you might be seeing some sticky prices. Although barrels of West Texas Intermediate (WTI) and Brent Crude have steadily gotten cheaper, the price at the pump has had a less steep downward trajectory. One economic study…