Least-squares estimates of the response of gasoline consumption to a change in the gasoline price are biased toward zero, given the endogeneity of gasoline prices. A seemingly natural solution to this problem is to instrument for gasoline prices using gasoline taxes, but this approach tends to...

System security in electricity markets relies crucially on the interaction between demand and supply over time. However, research on electricity markets has been mainly focusing on the supply side arguing that demand is rather inelastic. Assuming perfectly inelastic demand might lead to delusive...

Purpose The purpose of this paper is to use demand behavior estimation to find the sources of price variability among resort hotels at different Spanish destinations. Design/methodology/approach This paper estimates online demand functions during high season for seven four-star resort hotels...