Price assymetry in the Dutch retail gasoline market
2003-09-02
Research Report
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This paper analyses retail price adjustments in the Dutch gasoline market. We estimate an asymmetric error correction model on weekly price changes for the years 1996 to 2001. We construct five datasets, one for each working day. The conclusions on asymmetric pricing are shown to differ over these datasets, suggesting that the choice of the day for which prices are observed matters more than commonly believed. In our view, the insufficient robustness of outcomes might explain the mixed conclusions found in the literature. Using two approaches, we also show that the effect of asymmetry on Dutch consumer costs is negligible.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- L71 : Mining, Extraction, and Refining: Hydrocarbon Fuels
- D43 : Oligopoly and Other Forms of Market Imperfection
- E31 : Price Level; Inflation; Deflation
Automatically Extracted Terms
- price
- spot price
- adjustment
- market
- gasoline
- change
- increase
- decrease
- consumer
- period
- asymmetry
- price asymmetry
- dataset
- model
- excise taxes
- oil companies
- number
- figure
- consumer costs
- result
