Dynamic pricing in the spanish gasoline market: A tacit collusion equilibrium

Jordi Perdiguero

Energy Policy, 2010, vol. 38, issue 4, 1931-1937

Abstract: During the last twenty years, the Spanish petrol market has undergone an intensive restructuration process; it has changed from being a state-owned monopoly to total liberalization and privatization. This liberalization process was accompanied by measures that facilitated the creation of a "national champion," the Repsol Group, which is a huge, vertically integrated company with a high market share in all the industry's segments. Using a dynamic model, this paper analyses whether the prices established by companies in the Spanish gasoline market, after the restructuration process, fits with a tacit collusion equilibrium. The empirical results show that a strategic behaviour of companies occurs and is compatible with a tacit collusion price strategy. So, the restructuration process does not seem to have introduced effective competition into the Spanish gasoline market.

Keywords: Gasoline; market; Collusion; Dynamic; games (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (19)

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