Testing Parallel Pricing Behavior in the Polish Wholesale Fuel Market: an ARDL – Bound Testing Approach
Dynamic Econometric Models
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Title |
Testing Parallel Pricing Behavior in the Polish Wholesale Fuel Market: an ARDL – Bound Testing Approach
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Creator |
Bejger, Sylwester; Nicolaus Copernicus University
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Subject |
wholesale fuel market; parallel pricing; cointegration
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Description |
In this study, we investigated whether the observed series of fuel prices can be compatible with a specific theoretical model of strategic player interaction. Our primary interest is in determining whether a parallel pricing policy, implied by a theoretical model of strategic interactions, can be an industry-observed pricing mechanism. Therefore, we first calculated various descriptive statistics of the price series to discover any common patterns of individual series. Next, we determined whether parallel co-movement of the price levels exist using an ARDL – bound testing approach. This study finds that if we restricted our research to the described pricing mechanism (IPP pricing based on previous day fundamentals), the players will have chosen the levels of price in a parallel mode; this excludes 2007, when LOTOS appeared to be the price leader.
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Publisher |
Nicolaus Copernicus University
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Contributor |
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Date |
2016-02-18
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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Format |
application/pdf
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Identifier |
http://apcz.umk.pl/czasopisma/index.php/DEM/article/view/DEM.2015.007
10.12775/DEM.2015.007 |
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Source |
Dynamic Econometric Models; Vol 15 (2015); 111-128
Dynamic Econometric Models; Vol 15 (2015); 111-128 2450-7067 1234-3862 |
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Language |
eng
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Relation |
http://apcz.umk.pl/czasopisma/index.php/DEM/article/view/DEM.2015.007/8949
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Rights |
Copyright (c) 2016 Dynamic Econometric Models
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