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

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  • Perdiguero García, Jordi

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.

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  • Perdiguero García, Jordi, 2010. "Dynamic pricing in the spanish gasoline market: A tacit collusion equilibrium," Energy Policy, Elsevier, vol. 38(4), pages 1931-1937, April.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:4:p:1931-1937
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    6. Jordi Perdiguero-García, 2010. "“Symmetric or asymmetric gasoline prices? A metaanalysis approach”," IREA Working Papers 201013, University of Barcelona, Research Institute of Applied Economics, revised Nov 2010.
    7. Carmen García & Joan Ramon Borrell & José Manuel Ordóñez-de-Haro & Juan Luis Jiménez, 2022. "Managers’ expectations, business cycles and cartels’ life cycle," European Journal of Law and Economics, Springer, vol. 53(3), pages 451-484, June.
    8. Bergantino, Angela Stefania & Intini, Mario & Perdiguero, Jordi, 2020. "Pay cycles and fuel price: a quasi experimental approach," The Warwick Economics Research Paper Series (TWERPS) 1288, University of Warwick, Department of Economics.
    9. Escribano Alvaro & Torrado María, 2018. "Nonlinear and asymmetric pricing behaviour in the Spanish gasoline market," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 22(5), pages 1-19, December.
    10. Ander Iraizoz & José M Labeaga, 2022. "Incidence and Avoidance Effects of Spatial Fuel Tax Differentials: Evidence using Regional Tax Variation in Spain," Working Papers halshs-03789430, HAL.
    11. Lunde, Asger & Sandberg, Rickard & Söderberg, Magnus, 2019. "Calculating the damage of a cartel subject to transition periods: The international uranium cartel in the 1970s," Energy Economics, Elsevier, vol. 84(C).
    12. Woo-Hyung Hong & Daeyong Lee, 2020. "Asymmetric pricing dynamics with market power: investigating island data of the retail gasoline market," Empirical Economics, Springer, vol. 58(5), pages 2181-2221, May.
    13. Juan Luis Jiménez & Jordi Perdiguero, 2018. "Mergers and difference-in-difference estimator: Why firms do not increase prices?," European Journal of Law and Economics, Springer, vol. 45(2), pages 285-311, April.
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