Asymmetric price adjustment and the effects of structural reforms and low demand in the gasoline market: the case of Greece

The pricing mechanism in the gasoline market has often been subject of public debate Greece during crisis years. Inefficient could imply oligopolistic practices and losses to consumers’ welfare. A way test for inefficient pricing, is by testing asymmetries adjustment domestic prices world oil price changes. present paper tests asymmetric variations Greek examines whether structural reforms that took place post-2010 period had any impact on functioning market. analysis applies a consistent threshold cointegration technique makes use most recent observations at lowest frequency available. results provide evidence favour symmetric behaviour, just period. This may reflect competitive behaviour suppliers who interact new institutional framework following reforms.