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Cartels and asymmetric cost pass-through: evidence from Brazilian gas stations

Author

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  • Thiago Cacicedo

    (Heriot-Watt University)

Abstract

I analyse if collusive agreements are responsible for asymmetric cost pass-through in the Brazilian retail gasoline market. I find that, overall, Brazilian stations do not present asymmetric cost pass-through. However, this phenomenon is observed in stations that belong to a cartel. This different behavior is due to cartelised stations increasing their price more than non-cartelised ones when faced by increases in costs.

Suggested Citation

  • Thiago Cacicedo, 2022. "Cartels and asymmetric cost pass-through: evidence from Brazilian gas stations," Economics Bulletin, AccessEcon, vol. 42(4), pages 2034-2042.
    • Handle: RePEc:ebl:ecbull:eb-22-00574
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    cartels; asymmetric price transmission; gasoline market;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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