PRICE MATCHING AND THE DOMINO EFFECT IN A RETAIL GASOLINE MARKET

Using gasoline station price data collected eight times per day for 103 d for 27 stations in Guelph, Ontario, it is found that, consistent with an informal theory of competitive gasoline pricing, stations set prices to match a small number of other stations. However, these matched stations are not necessarily the closest. While retailers frequently respond to price changes within 2 h, many take considerably longer. Finally, while price decreases do ripple across the market like falling dominos, increases propagate across the city based more on geographic location and source of price control than on proximity to leaders of these increases. ( JEL L13, L40, L81)     

SURVIVE THEN THRIVE: DETERMINANTS OF SUCCESS IN THE ECONOMICS PH.D. PROGRAM

This study investigates the completion of the Ph.D. in economics. We use ex ante information, based upon reviewing individual applications from former doctoral students. Students need different skills to succeed at each distinct stage of the doctoral program. Significant determinants for passing the comprehensive exams include Graduate Record Exam (GRE) verbal and quantitative scores, a Masters degree, and prior focus on economics. By contrast, research motivation and math preparation play significant roles in completing the dissertation. GRE scores become insignificant for completion in the generalized ordered logit estimates, which emphasize the sequential nature of the Economics Ph.D. program . ( JEL I210)     

LABOR MARKET SEARCH: AN EXPERIMENTAL STUDY

The theoretical results derived from models of economic search have implications which relate to the structure and performance of labor markets. Utilizing a series of laboratory experiments, we attempt to capture many of the features of workers' search and also the conditions under which labor markets operate. By varying certain of the experimental conditions, we are able to determine the searchers' responses to changes in the terms of unemployment insurance, to the existence of a minimum wage, and to different states of information about the underlying distribution of wages. In most cases the behavior of the searchers is consistent with that predicted by theory.     

THE VARIABLE RATE-OF-GROWTH EFFECT IN THE LIFE-CYCLE SAVING MODEL

The rate of growth in real GNP g affects the aggregate saving rate positively in life-cycle saving models. This rate of growth effect is invariably estimated as the coefficient of g in the saving function. We show that other determinants of the saving rate influence the rate of growth effect. In other words, the rate of growth effect is not constant. Specifically, the real rate of return on financial assets and the population dependency ratio determine the timing of saving over the life cycle and, hence, alter the rate of growth effect. The dependency ratio also has an effect on the saving rate which is independent of g because it, together with the foreign saving rate, determines the level of saving over the life cycle.     

THAT'S NEWS TO ME! INFORMATION REVELATION IN PROFESSIONAL CERTIFICATION MARKETS

Using sportscard grading as an example, we employ field experiments to investigate the informational role of professional certifiers. Empirical results suggest three patterns: first, the grading certification provided by the first professional certifier offers new information to inexperienced traders but adds little information to experienced dealers. This implies that the certification may reduce the information asymmetry between informed and uninformed parties. Second, compared with the incumbent, new entrants adopt more precise signals and use finer grading cutoffs to differentiate from the incumbent. Third, our measured differentiated grading cutoffs map consistently into prevailing market prices, suggesting that the market recognizes differences across multiple grading criteria. ( JEL D8, C93)