Rockets and feathers meet markup margins: Applications to the oil and gasoline industry

2016 ◽  
Vol 49 (2) ◽  
pp. 772-788 ◽  
Author(s):  
Janelle Mann
Keyword(s):  
Gasoline Industry ◽  
Rockets And Feathers

scholarly journals Learning to Coordinate: A Study in Retail Gasoline

2019 ◽  
Vol 109 (2) ◽  
pp. 591-619 ◽  
Author(s):  
David P. Byrne ◽  
Nicolas de Roos
Keyword(s):  
Price Competition ◽  
Equilibrium Selection ◽  
Price Leadership ◽  
Market Prices ◽  
Retail Gasoline ◽  
Gasoline Industry ◽  
Urban Market ◽  
Dominant Firms ◽  
Equilibrium Transition ◽  
Detection Strategies

This paper studies equilibrium selection in the retail gasoline industry. We exploit a unique dataset that contains the universe of station-level prices for an urban market for 15 years, and that encompasses a coordinated equilibrium transition mid-sample. We uncover a gradual, three-year equilibrium transition, whereby dominant firms use price leadership and price experiments to create focal points that coordinate market prices, soften price competition, and enhance retail margins. Our results inform the theory of collusion, with particular relevance to the initiation of collusion and equilibrium selection. We also highlight new insights into merger policy and collusion detection strategies. (JEL G34, L12, L13, L71, L81, Q35)

Rockets and feathers behaviour in the Spanish gasoline and diesel market: New evidence

2019 ◽  
Vol 71 (4) ◽  
pp. 657-683 ◽  
Author(s):  
José Mª Martín‐Moreno ◽  
Rafaela Pérez ◽  
Jesús Ruiz
Keyword(s):  
Rockets And Feathers ◽  
New Evidence
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