Consumer Information and Price Transmission: Empirical Evidence*

We investigate how consumer information affects price adjustment in the Austrian retail gasoline market. Our measure of is obtained from detailed census data on commuting behavior, as commuters can freely sample prices their route and are thus better informed about prices. A threshold error-correction model suggests that adjust more quickly if cost shocks exceed certain thresholds. Parametric semi-parametric regressions show a larger share consumers increases both transmission speed pass-through rate, but has no effect asymmetry transmission.