Increased market transparency in Germany’s gasoline market: The death of rockets and feathers?

Frondel, Manuel; Horvath, Marco; Vance, Colin; Kihm, Alexander

Increased market transparency in Germany’s gasoline market: The death of rockets and feathers?

dc.contributor.author	Frondel, Manuel
dc.contributor.author	Horvath, Marco
dc.contributor.author	Vance, Colin
dc.contributor.author	Kihm, Alexander
dc.date.accessioned	2018-12-04T08:30:36Z
dc.date.available	2018-12-04T08:30:36Z
dc.date.issued	2018
dc.description.abstract	Drawing on a consumer search model and a unique panel data set of daily fuel prices covering over 5,000 fuel stations in Germany, this paper documents a change in the price setting behavior of retail gas stations following the introduction of a legally mandated on-line price portal. Prior to the introduction of the portal in 2013, positive asymmetry is found on the basis of error correction models, with prices following the “rockets and feathers” pattern documented in many commodity markets, particularly in retail markets for fuels. In the aftermath of the portal’s introduction, by contrast, negative asymmetry is observed: fuel price decreases in response to refinery price decreases are stronger than fuel price increases due to refinery price increases. This reversal in price pass-through, which is found among both branded and unbranded stations, suggests welfare gains for consumers from increased market transparency.	en
dc.identifier.uri	http://hdl.handle.net/2003/37826
dc.identifier.uri	http://dx.doi.org/10.17877/DE290R-19821
dc.language.iso	en	de
dc.relation.ispartofseries	Discussion Paper / SFB823;31/2018	en
dc.subject	retail markets	en
dc.subject	error correction model	en
dc.subject	competition	en
dc.subject.ddc	310
dc.subject.ddc	330
dc.subject.ddc	620
dc.subject.rswk	Kraftstoffpreis	de
dc.subject.rswk	Wettbewerb	de
dc.subject.rswk	Fehlerkorrekturmodell	de
dc.title	Increased market transparency in Germany’s gasoline market: The death of rockets and feathers?	en
dc.type	Text	de
dc.type.publicationtype	workingPaper	de
dcterms.accessRights	open access
eldorado.secondarypublication	false	de

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