On the Effects of Suggested Prices in Gasoline Markets

Arbeitspapier

This article analyzes the role of suggested prices in the Dutch retail market for gasoline. Suggested prices are announced by large oil companies with the suggestion that retailers follow them. There are at least two competing rationales for the existence of suggested prices: they may either help retailers translate changes in international gasoline spot market prices into retail prices, or they may coordinate retail prices. We show that there is, next to the international spot market prices, additional information in suggested prices that explains retail prices. Therefore, we conclude that suggested prices help to coordinate retail prices.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 08-116/1

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Vertical Restraints; Resale Price Maintenance; Quantity Discounts ; Chemicals; Rubber; Drugs; Biotechnology; Plastics
• Subject: gasoline markets ; collusion ; price setting ; suggested prices ; Tankstelle ; Preisführer ; Großunternehmen ; Spillover-Effekt ; Niederlande

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Faber, Riemer P. ; Janssen, Maarten C.W.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/86932
• Last update: 10.03.2025, 11:43 AM CET