“One more lie: the ‘Monday effect’ in Spain’s retail petrol market”
AbstractEmpirical evidence drawn from the economic literature points to a low level of competition in the retail petrol market. Similar evidence can be found for the Spanish market. In fact, both Spain’s antitrust authority (Comisión Nacional de la Competencia) and its energy regulator (Comisión Nacional de la Energía) have recently initiated disciplinary proceedings against the majors on the grounds of suspected price manipulation in the retail petrol market. They are accused of cutting retail prices on Mondays so as to distort the rank position of Spain in European Union statistics in a practice that has received the name of the ‘Monday effect’. Here, we analyze this effect by constructing a database that includes daily retail prices for all petrol stations in Spain in the period 2009-2012, and a more detailed database for the city of Barcelona in 2013. Our estimations confirm that: i) in 2011 and 2012 prices fell on Mondays at retailers branded by majors; ii) prices were unchanged at stations in our two control groups; iii) prices were also seen to fall when a more detailed analysis was conducted, and this price cut was also found in 2013. In short, one more indicator of collusion in this sector and … one more lie.
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Bibliographic InfoPaper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201324.
Length: 25 pages
Date of creation: Dec 2013
Date of revision: Dec 2013
Petrol; Antitrust; Monday effect. JEL classification: L13; L59; L71.;
Find related papers by JEL classification:
- Mon - Business Administration and Business Economics; Marketing; Accounting - - - - -
- eff - - - - - -
- JEL - Labor and Demographic Economics - - - - -
- cla - - - - - -
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
- L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
- NEP-COM-2013-12-15 (Industrial Competition)
- NEP-ENE-2013-12-15 (Energy Economics)
- NEP-HME-2013-12-15 (Heterodox Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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