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Causes of price difference are cross-border fees for international transactions and currency exchange rates.
Empirical evidence is mixed and it does not allow for simple generalisations about the causes of price asymmetries (Meyer and Von Cramon-Taubadel, 2004; Vavra and Goodwin 2005, Cavicchioli, 2010).
However, when estimating demand functions, identifying whether the causes of price variation are demand driven (for example, greater demand for sugar sweetened drinks in the summer might prompt retailers to raise prices) or supply driven (and so independent of demand; for example, change in production costs leading to a rise in sale price) is difficult.
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The cause of price increases, after all, is not an overheating economy, but the real's fall, rising taxes and the drought.
But state gas taxes, which run as high as 45.5 cents a gallon, often add far more to the price of gas than the 18.4-cent federal excise tax and are the primary cause of price disparities across state lines.
The flaws of the ECB's obsessive anti-inflationary stand, and its propensity to raise the interest rate whatever the cause of price rises, are also plain to see.
Although Tooke's support of the gold standard remained unwavering, his study of prices gradually led him to the view that bank-created money is a result and not a cause of price changes, thereby adopting one of the basic tenets of the antibullionist position.
Uncertainty around demand is the main cause of price fluctuation, as every user's intentions are a mystery to every other user.
The continuing rise in unemployment in Europe should also help keep a cap on wages, which have been another underlying cause of price rises.
This effect was observed particularly for medicines produced by more than three generic companies, which includes increased competition in addition to improved price transparency as a potential cause of price decreases.
The immediate causes of the price spike were many and varied.
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