Economics at your fingertips  

Wholesale fuel price adjustment in Poland: examination of competi-tive performance

Sylwester Bejger ()
Additional contact information
Sylwester Bejger: Nicolaus Copernicus University in Torun

Ekonomia i Prawo, 2019, vol. 18, issue 4, 385-412

Abstract: Motivation: Import parity pricing, potentially provoking parallel pricing, and asymmetric price transmission are both considered as the fac-tors that can distort competitiveness and foster collusive behavior on the fuel markets. Aim: The study encompass an analysis of usual ‘rocket and feathers’ reactions in response to common drivers of the gasoline wholesale price and comparative analysis of individual players’ pricing paths in order to examine competitive performance of the market. To account for an im-plied IPP pricing mechanism, a set of common wholesale price determi-nants was expanded. Results: We revealed a significant short-run asymme-tries in a transmission of all downstream price determinants and shown that the foreign exchange rate is a main driver underlying a positive asymmetry in the wholesale prices’ paths. We compared dynamic price adjustment paths for the major players and revealed the common patterns. That suggest a strong possibility of parallel pricing.

Keywords: market competition; asymmetric price adjustment; individual players’ pricing mechanism; nonlinear econometric models (search for similar items in EconPapers)
JEL-codes: D43 L1 L7 Q4 C2 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Ekonomia i Prawo is currently edited by Barbara Polszakiewicz and Jerzy Boehlke

More articles in Ekonomia i Prawo from Uniwersytet Mikolaja Kopernika
Bibliographic data for series maintained by Miroslawa Buczynska ().

Page updated 2020-04-28
Handle: RePEc:cpn:umkeip:v:18:y:2019:i:4:p:385-412