Rockets and Feathers in the Gasoline Market: Evidence from South Korea

This study analyzes how changes in oil prices are transmitted to gasoline Korea. We attempt identify the main causes of observed price asymmetry and offer plausible theories by investigating transmission at different levels distribution process. Retail react faster increases Singapore spot market than decreases. also find from wholesale gasoline, but opposite direction. Additionally, there is little evidence pass-through retail prices. Therefore, due mainly related cost search for consumers seem be most relevant explaining asymmetry. Finally, results indicate that asymmetric pricing a substantial loss consumers.