Increased market transparency in Germany's gasoline market: What about rockets and feathers?

Manuel Frondel, Marco Horvath, Colin Vance and Alexander Kihm

No 810, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: Drawing on panel data on daily fuel prices covering over 5,000 filling stations in Germany, this paper documents a change in the stations' price setting behavior following the introduction of a legally mandated online price portal in 2013. Prior to the portal, positive asymmetry is found on the basis of error correction models, with prices following the "rockets and feathers" pattern that is typically found for fuels. In the aftermath of the portal, by contrast, negative asymmetry is observed: fuel price decreases in response to refinery price decreases are stronger than fuel price increases due to refinery price increases.

Keywords: retail markets; competition; error correction model (search for similar items in EconPapers)
JEL-codes: D12 Q41 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-com, nep-ene, nep-eur and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:810

DOI: 10.4419/86788939

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