Pricing in Retail Gasoline Markets
نویسندگان
چکیده
منابع مشابه
Edgeworth Price Cycles, Cost-based Pricing and Sticky Pricing in Retail Gasoline Markets
This paper examines dynamic pricing behavior in retail gasoline markets for 19 Canadian cities over 574 weeks. I find three distinct retail pricing patterns: 1. standard cost-based pricing, 2. sticky pricing, and 3. steep, asymmetric retail price cycles that, while seldom documented empirically, resemble those of Maskin & Tirole [1988]. I use a Markov switching regression to estimate the preval...
متن کاملOdd Prices at Retail Gasoline Stations: Focal Point Pricing and Tacit Collusion
This study empirically investigates the theory that odd numbered pricing points can be used as focal points to facilitate tacit collusion. Odd ending prices are heavily used in many retail markets. While the demand e ects of odd pricing points are commonly studied, their potential role in the coordination of prices is rarely discussed. I show that gasoline stations in the U.S. disproportionatel...
متن کاملToo Close to be Similar: Product and Price Competition in Retail Gasoline Markets
We examine how product and pricing decisions of retail gasoline stations depend on local market demographics and the degree of competitive intensity in the market. We are able to shed light on the observed empirical phenomenon that proximate gasoline stations price very similarly in some markets, but very differently in other markets. Our analysis of product design and price competition between...
متن کاملCompetition and Cooperation in Retail Gasoline Markets: An Empirical Study
Local retail gasoline markets offer a relatively low cost opportunity to test a number of hypotheses from the industrial organization literature regarding the interdependence of pricing choices. Is there tacit collusion among retailers? Or does the strong correlation of prices represent the natural workings of a highly competitive market (i.e. the law of one price)? Is there evidence of price l...
متن کاملLocational Choice and Price Competition: Some Empirical Results for the Austrian Retail Gasoline Market
Using data from the Austrian retail gasoline market we find that a higher station density reduces average prices. Market (i.e. ownership) concentration does not significantly affect average price, however is negatively related to the density of stations. Estimation of the pricing and entry equations as simultaneous equations does not alter our conclusions, and suggests causality running from st...
متن کامل