{"paper":{"title":"Price Elasticity of Gas Demand on L1 and L2: Evidence from Ethereum and Arbitrum","license":"http://creativecommons.org/licenses/by/4.0/","headline":"","cross_cats":["cs.GT"],"primary_cat":"econ.EM","authors_text":"Akaki Mamageishvili, Pranay Anchuri","submitted_at":"2026-06-11T16:38:31Z","abstract_excerpt":"We estimate the causal price elasticity of gas demand on Ethereum mainnet (L1)\n  and Arbitrum One (L2), a quantity necessary for calibrating fee mechanism\n  simulations, evaluating resource pricing reforms, and explaining observed\n  usage patterns. A two-way fixed effects panel regression instrumented by each\n  wallet's own lagged base fee removes the congestion-driven endogeneity that\n  causes naive regressions to substantially underestimate demand sensitivity.\n  On Ethereum mainnet (full year 2025), the pooled IV elasticity is -0.006***,\n  near-inelastic: a 10% fee increase reduces total gas"},"claims":{"count":0,"items":[],"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"source":{"id":"2606.13555","kind":"arxiv","version":1},"verdict":{"id":null,"model_set":{},"created_at":null,"strongest_claim":"","one_line_summary":"","pipeline_version":null,"weakest_assumption":"","pith_extraction_headline":""},"integrity":{"clean":true,"summary":{"advisory":0,"critical":0,"by_detector":{},"informational":0},"endpoint":"/pith/2606.13555/integrity.json","findings":[],"available":true,"detectors_run":[],"snapshot_sha256":"c28c3603d3b5d939e8dc4c7e95fa8dfce3d595e45f758748cecf8e644a296938"},"references":{"count":0,"sample":[],"resolved_work":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57","internal_anchors":0},"formal_canon":{"evidence_count":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"author_claims":{"count":0,"strong_count":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"builder_version":"pith-number-builder-2026-05-17-v1"}