The microeconomic adjustment of fuel prices in France.

Summary Using millions of individual price records between 2007 and 2009, this study describes several stylized facts about fuel price adjustment in France: fuel prices change on average once a week . they change more often on Tuesdays and Fridays . competition increases the frequency of price changes . the distribution of price change sizes shows few changes below 2% . price change size and price duration are correlated . fuel price inflation is mostly determined by the relative share of service stations raising or lowering their prices. Adjustment cost models that include informational rigidities best reproduce these stylized facts.