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Asymmetric fuel pricing in transition economies: The case of Moscow

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  • Bakytzhanova Zhuldyz

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    Abstract

    Empirical studies (Bacon, 1991; Peltzman, 2000) show that output prices tend to respond faster to input price increases than to decreases. This paper finds out such asymmetry in the fuel market of Moscow and analyzes the influence of companies' and market characteristics on asymmetric response. The conclusion is that different mechanisms of the phenomenon, including tacit collusion and consumer search, probably coexist in the Moscow retail gasoline market.

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    Bibliographic Info

    Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 05-18e.

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    Date of creation: 29 Dec 2005
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    Handle: RePEc:eer:wpalle:05-18e

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    Postal: EERC Research Network, Russia and CIS, 13, Yakira Str., suite 332, Kyiv, 04119 Ukraine
    Phone: +38(044)492-8012
    Fax: +1(202)478-1968
    Web page: http://www.eerc.ru

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    Postal: EERC Research Network, Russia and CIS, 13, Yakira Str., suite 332, Kyiv, 04119 Ukraine
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    Web: https://eerc.ru/paper

    Related research

    Keywords: Russia; Kazakhstan; market concentration; gasoline; asymmetric response;

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    Cited by:
    1. Nodir Adilov & Hedayeh Samavati, 2009. "Pump Prices and Oil Prices: A Tale of Two Directions," Atlantic Economic Journal, International Atlantic Economic Society, vol. 37(1), pages 51-64, March.

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