REGIONAL PATTERNS FOR THE RETAIL PETROL PRICES

Price Transparency and Retail Prices

Price transparency initiatives are typically undertaken by third parties to ensure that consumers can compare the prices of competing offers in markets where obtaining such information is costly. Such practices have recently become widespread, yet it is unclear whether the increased price competition due to lower search costs overcomes the potential for collusion between competitors due to lowe...

Why Suggest Non-Binding Retail Prices?

We provide a simple behavioral explanation of why manufacturers frequently announce non-binding suggested retail prices for their products. Our model is based on the assumption that once the actual price for a product exceeds its suggested retail price, the marginal propensity to consume suddenly jumps downward. We show that this may induce a monopolistic retailer to set the price equal to the ...

Do Daily Retail Gasoline Prices adjust Asymmetrically?

The Determinants of Retail Tyre Prices in the Uk*

In a market in which prices might be thought to be competitive, we find substantial divergences between prices for given brands available at different outlets. The price pattern is consistent with there being market power at the manufacturer and retailer level with vertical linkages between manufacturers and their retail "equity chains" being important. For example tyre chains owned by manufact...

Retail Dairy Prices Fluctuate With the Farm Value of Milk

Farm milk prices tend to be volatile. Dairy farmers, industry pundits, and policymakers further tend to react to price volatility with alarm. One point of concern is the response of retail prices. This study investigates farm-to-retail price transmission in the 2000s for whole milk and cheddar cheese. Results show that price shocks at the farm gate are transmitted with delay and asymmetry to re...