Rockets and Feathers in Gas Markets—The Experimental Approach
Yaron Lahav, Assistant Professor, Ben-Gurion University of the Negev, Beer Sheva, Israel
The proposal examines the rockets and feathers phenomenon in experimental gas markets. Will prices fall more slowly than they rise following an exogenous shock? The study will examine the effects of introducing competition and information asymmetries between buyers and sellers. What are the factors affecting the speed of price responses in posted offer markets to changes in seller costs?