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price pass-through from crude oil spot prices to retail gasoline pump prices. We show that regional differences do exist … results in a change in retail gasoline pump prices somewhere between 2.52¢ and 2.65¢. We examine the presence of the rockets …
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Major airlines rely on fuel hedging to manage risk of volatile fuel prices. We show that fuel hedging leads to lump sum gain or loss, which does not affect airlines' purchase cost of fuel (variable cost), but is incorporated into the reported airline fuel costs. Our estimation results suggest...
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