Download or read book Do Rockets Rise Faster and Feathers Fall Slower in an Atmosphere of Local Market Power Evidence from the Retail Gasoline Market written by Jeremy A. Verlinda and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study explores the possibility that local market power influences the observed asymmetric relationship between changes in wholesale gasoline costs and changes in retail gasoline prices. I exploit an original data set of weekly gas station prices in Southern California from September 2002 to May 2003, and take advantage of detailed station and local market level characteristics to determine the extent to which geographic and product differentiation influences price response asymmetry. I find that brand identity, proximity to rival stations, and local market features and demographics each influence a station's predicted price-response asymmetry. Web Appendix available at: http://ssrn.com/abstract=1000964.
Download or read book Essays on Market Response to Changes in Costs and Price Transparency written by Anna Olga Smolnik and published by Cuvillier Verlag. This book was released on 2017-01-25 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dissertation consists of three empirical studies and takes a closer look at price fluctuations using German gasoline prices as an example for a homogenous good. It analyzes consumers’ reaction to price fluctuations and respectively the pricing behavior of firms. The first paper, which was developed with co-authorship, explores consumers’ online price search effects on the pricing behavior of firms (gasoline price level and price dispersion). As regulators have recently implemented a mechanism for reporting all price changes to a central data base, the core assumption of this price reporting scheme is that the increase in price transparency will lead to a decline in the price level and a reduction in price dispersion. The second study addresses the question whether German gas stations adjust their retail prices asymmetrically in response to crude oil price changes, i.e., whether gas stations react quicker to crude oil price increases than to crude oil price decreases. The third study aims to analyze whether consumers react more strongly to gasoline price increases or to price decreases when considering buying a new vehicle.
Download or read book Wykrywanie pomiar i ocena strategicznych horyzontalnych zachowa niekonkurencyjnych przedsi biorstw Analiza ilo ciowa written by SYLWESTER BEJGER and published by Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika. This book was released on 2016 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: [...] Analizując metody stosowane obecnie w obrocie prawnym dla potrzeb dowodowych w przedmiotowym obszarze, można poczynić dwie obserwacje: stosowane (i rekomendowane) ekonomiczne metody dowodowe dotyczące weryfikacji istnienia horyzontalnych zachowań antykonkurencyjnych są zasadniczo metodami jakościowymi, opartymi na obserwacji pewnych arbitralnie zestawionych czynników sprzyjających oraz ich interpretacji,precyzyjny katalog metod ilościowych w przedmiotowym zakresie nie jest objęty żadną jednolitą rekomendacją. W związku z tym spostrzeżeniem, głównym celem, jaki starano się zrealizować, było wypełnienie pewnej luki w stanie wiedzy związanej z aplikacją metody naukowej w zakresie ekonomicznych dowodów pośrednich niekonkurencyjnych zachowań horyzontalnych. Miarą realizacji tego celu jest, poddany pod osąd Czytelnika, stopień i jakość scalenia i wskazania związków pomiędzy aktualną wykładnią prawa, teorią ekonomii a integrowanymi w ramach omawianych metod narzędziami analiz ilościowych. To z kolei prowadzi do zarysowania propozycji instrumentarium badawczego horyzontalnych zachowań antykonkurencyjnych, obejmującego zarówno metody detektorowe, modelowanie strukturalne czy testy oparte na pomiarze siły rynkowej, jak i techniczno-aplikacyjną stronę implementacji wymienionych metod.
Download or read book Rockets and Feathers Revisited written by Emmanuel Asane-Otoo and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we revisit the empirical observation that prices rise like rockets when input costs increase but fall like feathers when input costs decrease. The analysis draws on a novel dataset that include daily retail prices of gasoline and diesel from virtually all fuel stations in Germany over the period from January 1, 2014 to December 31, 2018. Our findings from the national, state-specific and station-level analyses based on an asymmetric error correction model indicate that asymmetric pricing is the norm rather than exception. Specifically, we find empirical evidence that points to a pervasive rockets-and-feathers pattern. We also find that asymmetric pricing in the German retail fuel market might partly be the consequence of tacit collusion among competitors as well as disparate search intensity on the part of consumers. We further show that temporal aggregation of station-level price data might lead to inaccurate inferences and could account for the contradictory findings in the extant literature.
Download or read book Price response Asymmetry and Spatial Differentiation in Local Retail Gasoline Markets written by Jeremy A. Verlinda and published by . This book was released on 2007 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Asymmetries in Retail Gasoline Price Dynamics and Local Market Power written by George Deltas and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using monthly data from the 48 contiguous states (except Nevada) for the 1988-2002 period, it is shown that retail gasoline prices respond faster to wholesale price increases than to equivalent wholesale price decreases. Moreover, markets with high average retail-wholesale margins experience a slower adjustment and a higher degree of asymmetry. These results are robust to whether or not an error correction term is used, and to a number of other specifications. Since gasoline is the only variable input, one could reasonably assume that average margins in a state reflect the degree of market power at the retail level. This suggests that sticky prices and response asymmetries in the gasoline market are, at least partially, a consequence of retail market power, raising the possibility that slow price adjustments and asymmetric price responses could be used as an indicator of potential departure from perfect competition. It is also shown that out-of-sample forecasts based on asymmetric models yield substantially better predictions for the path of retail prices than forecasts based on the symmetric models. This result is robust to different measures of forecast accuracy. The higher accuracy of the out-of-sample forecasts based on asymmetric models indicates that these asymmetries are not just an outcome of fitting to a particular sample but represent the underlying data generating process.
Download or read book Price Response Asymmetry and Spatial Differentiation in Local Retail Gasoline Markets written by Jeremy A. Verlinda and published by BiblioGov. This book was released on 2013-06 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study explores the possibility that local market power influences the observed asymmetric relationship between changes in wholesale gasoline costs and changes in retail gasoline prices. I exploit an original data set of weekly gas station prices in Southern California from September 2002 to May 2003, and take advantage of detailed station and local market level characteristics to determine the extent to which spatial differentiation influences price response asymmetry. I find that brand identity, proximity to rival stations, bundling and advertising, operation type, and local market features and demographics each influence a station's predicted price-response asymmetry.
Download or read book Rockets and Feathers Revisited written by Matteo Manera and published by . This book was released on 2013 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper re-examines the issue of asymmetries in the transmission of shocks to crude oil prices onto the retail price of gasoline. Relative to the previous literature, the distinguishing features of the present paper are: i) use of updated and comparable data to carry out an international comparison of gasoline markets; ii) two-stage modeling of the transmission of oil price shocks to gasoline prices (first refinery stage and second distribution stage), in order to assess possible asymmetries at either one or both stages; iii) use of asymmetric error correction models to distinguish between asymmetries that arise from short-run deviations in input prices and from the speed at which the gasoline price reverts to its long-run level; iv) explicit, possibly asymmetric, role of the exchange rate, as crude oil is paid for in dollars whereas gasoline sells for different sums of national currencies; v) bootstrapping of F tests of asymmetries, in order to overcome the low-power problem of conventional testing procedures. In contrast to several previous findings, the results generally point to widespread differences in both adjustment speeds and short-run responses when input prices rise or fall.
Download or read book Experimental Gasoline Markets written by Cary A. Deck and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Zone pricing in wholesale gasoline markets is a contentious topic in the public policy debate. Refiners contend that they use zone pricing to be competitive with local rivals. Critics claim that zone pricing benefits the oil industry and harms consumers. With a controlled experiment, we investigate the competitive effects of zone pricing on consumers, retail stations, and refiners vis-a-vis the proposed policy prescription of uniform wholesale pricing to retailers. We also examine the issue of divorcement and the rockets and feathers phenomenon. The former is the legal restriction that refiners and retailers cannot be vertically integrated, and the latter is the perception that retail gasoline prices rise faster than they fall in response to random walk movements in the world price for oil.
Download or read book Rockets and Feathers written by Robert William Bacon and published by . This book was released on 1990 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Intuitive Explanation of Rocket and Feather Effects written by John van den Berghe and published by . This book was released on 2018 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: Searching consumers, uncertain about price distribution in a market, will learn about this distribution through prices they observe. Firms will be able to use these learning effects to increase markups. Because the price distribution varies more in times when input costs are volatile, consumers often begin with a weaker prior due to high volatility and will learn more from the price. This volatility effect speeds price increases when costs increase, but slows price decreases when costs decrease. This offers a unique explanation to the empirical puzzle of why prices increase more quickly with cost increases and decrease more slowly with cost decreases.
Download or read book Sticky Prices Inventories and Market Power in Wholesale Gasoline Markets written by Severin Borenstein and published by . This book was released on 1996 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present and test an explanation for lags in the adjustment of wholesale gasoline prices to changes in crude oil prices. Our simple model with costly adjustment of production and inventories implies that output prices will respond with a lag to cost shocks even in the absence of menu costs, imperfect information, and long-term buyer/seller relationships. The model predicts that futures prices for gasoline will adjust incompletely to crude oil price shocks occurring close to the expiration date of the futures contract. We test and confirm this implication. The model also predicts that firms with market power will choose a different price adjustment path than would perfectly competitive firms. We examine the responses of prices in 188 local wholesale gasoline markets and find evidence that greater market power leads to slower output price adjustment
Download or read book On Market Power in the Retail Gasoline Industry and Its Effect on Prices written by Nicholas Oxedine and published by . This book was released on 2004 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Price Changes in the Gasoline Market written by and published by . This book was released on 1999 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report examines a recurring question about gasoline markets: why, especially in times of high price volatility, do retail gasoline prices seem to rise quickly but fall back more slowly? Do gasoline prices actually rise faster than they fall, or does this just appear to be the case because people tend to pay more attention to prices when they're rising? This question is more complex than it might appear to be initially, and it has been addressed by numerous analysts in government, academia and industry. The question is very important, because perceived problems with retail gasoline pricing have been used in arguments for government regulation of prices. The phenomenon of prices at different market levels tending to move differently relative to each other depending on direction is known as price asymmetry. This report summarizes the previous work on gasoline price asymmetry and provides a method for testing for asymmetry in a wide variety of situations. The major finding of this paper is that there is some amount of asymmetry and pattern asymmetry, especially at the retail level, in the Midwestern states that are the focus of the analysis. Nevertheless, both the amount asymmetry and pattern asymmetry are relatively small. In addition, much of the pattern asymmetry detected in this and previous studies could be a statistical artifact caused by the time lags between price changes at different points in the gasoline distribution system. In other words, retail gasoline prices do sometimes rise faster than they fall, but this is largely a lagged market response to an upward shock in the underlying wholesale gasoline or crude oil prices, followed by a return toward the previous baseline. After consistent time lags are factored out, most apparent asymmetry disappears.
Download or read book Edgeworth Price Cycles written by Michael D. Noel and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article, I exploit a new station-level, twelve-hourly price dataset to examine the strong retail price cycles in the Toronto gasoline market. The cycles are visually similar to the theoretical Edgeworth Cycles of Maskin & Tirole [1988]: strongly asymmetric, tall, rapid, and highly synchronous across stations. I test a series of predictions made by the theory about how firm behaviors would differentially evolve over the path of a cycle. The evidence is consistent with the existence of Edgeworth Cycles and inconsistent with competing hypotheses. One finding is that smaller firms are more likely than larger firms to initiate rounds of price undercutting but the reverse is true for rounds of price increases. While the cycles are an interesting phenomenon for study in their own right, the evidence has important implications for understanding market power in both cycling and non-cycling gasoline markets.
Download or read book The Wretched of the Earth written by Frantz Fanon and published by Grove/Atlantic, Inc.. This book was released on 2007-12-01 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: The sixtieth anniversary edition of Frantz Fanon’s landmark text, now with a new introduction by Cornel West First published in 1961, and reissued in this sixtieth anniversary edition with a powerful new introduction by Cornel West, Frantz Fanon’s The Wretched of the Earth is a masterfuland timeless interrogation of race, colonialism, psychological trauma, and revolutionary struggle, and a continuing influence on movements from Black Lives Matter to decolonization. A landmark text for revolutionaries and activists, The Wretched of the Earth is an eternal touchstone for civil rights, anti-colonialism, psychiatric studies, and Black consciousness movements around the world. Alongside Cornel West’s introduction, the book features critical essays by Jean-Paul Sartre and Homi K. Bhabha. This sixtieth anniversary edition of Fanon’s most famous text stands proudly alongside such pillars of anti-colonialism and anti-racism as Edward Said’s Orientalism and The Autobiography of Malcolm X.
Download or read book Public Health Significance of Urban Pests written by Xavier Bonnefoy and published by World Health Organization. This book was released on 2008 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: The second half of the 20th century and the beginning of the 21st century witnessed important changes in ecology, climate and human behaviour that favoured the development of urban pests. Most alarmingly, urban planners now face the dramatic expansion of urban sprawl, in which city suburbs are growing into the natural habitats of ticks, rodents and other pests. Also, many city managers now erroneously assume that pest-borne diseases are relics of the past. All these changes make timely a new analysis of the direct and indirect effects of present-day urban pests on health. Such an analysis should lead to the development of strategies to manage them and reduce the risk of exposure. To this end, WHO invited international experts in various fields - pests, pest-related diseases and pest management - to provide evidence on which to base policies. These experts identified the public health risk posed by various pests and appropriate measures to prevent and control them. This book presents their conclusions and formulates policy options for all levels of decision-making to manage pests and pest-related diseases in the future. [Ed.]
