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Why do gasoline prices react to things that have not happened?

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Abstract

Some people complain they are being gouged at the pump, but raising prices now in anticipation of what might happen helps ensure an adequate gas supply.

Suggested Citation

  • William R. Emmons & Christopher J. Neely, 2007. "Why do gasoline prices react to things that have not happened?," The Regional Economist, Federal Reserve Bank of St. Louis, issue Jul, pages 10-11.
    • Handle: RePEc:fip:fedlre:y:2007:i:jul:p:10-11
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    File URL: https://www.stlouisfed.org/publications/regional-economist/july-2007/why-do-gasoline-prices-react-to-things-that-have-not-happened
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    Keywords

    Gasoline; Petroleum industry and trade;

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