Oil price volatility and the asymmetric response of gasoline prices to oil price increases and decreases

Radchenko, S. I.

doi:10.1016/j.eneco.2005.06.001

Cited by 151 publications

(84 citation statements)

References 25 publications

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“…Only after the consumers engage in a costly and time-consuming search to find the lowest prices are the filling stations operators forced to lower prices to a competitive level. According to this theory, volatile crude oil prices create a signal-extraction problem for consumers; it encourages consumers to search less thus making gasoline filling station operators less competitive (Radchenko 2005).…”

Section: Price and Exchange Rate Asymmetriesmentioning

confidence: 99%

“…Except market power, consumer search costs are another possible explanation for the existence of asymmetric response of retail gasoline prices to changes in the wholesale price (see Borenstein et al 1997;Borenstein 1991;Radchenko 2005;Peltzman 2000). According to the search cost theory, each filling station has a locational monopoly which is limited by consumer search.…”

Section: Price and Exchange Rate Asymmetriesmentioning

confidence: 99%

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Competition and price asymmetries in the Greek oil sector: an empirical analysis on gasoline market

Polemis

2011

Empir Econ

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This article attempts to investigate the issue of asymmetries in the transmission of shocks to input prices and exchange rate onto the wholesale and retail price of gasoline respectively. For this purpose, we utilise the error-correction methodology in the Greek gasoline market. The sample consists of monthly data covering the period of January 1988 to June 2006. We also try to analyse by using impulse response functions the effect of competition on the dynamic adjustment of gasoline price to which has been paid scant attention in the past. The results favour the common perception that retail gasoline prices respond asymmetrically to cost increases and decreases both in the long and the short-run. At the wholesale segment, there is a symmetric response of the spot prices of gasoline towards the adjustment to the short-run responses of the exchange rate. Lastly, after the deregulation, wholesale prices of gasoline tend to gradually restore equilibrium triggered by a price shock compared to the regulated period.

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Section: Price and Exchange Rate Asymmetriesmentioning

confidence: 99%

Section: Price and Exchange Rate Asymmetriesmentioning

confidence: 99%

Competition and price asymmetries in the Greek oil sector: an empirical analysis on gasoline market

Polemis

2011

Empir Econ

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“…Sendo assim, "This theory is based on the assumption that the observed asymmetry in the response of gasoline prices is evidence of imperfect competition among retailers. (...) In this case, price reduction occurs only if there is a significant drop in sales indicating price cutting by other retailers" Radchenko (2004).…”

Section: Algumas Justificativas Teóricas Para a Existência De Assimetriamentioning

confidence: 99%

“…Contudo, em se aceitando esta hipótese seria necessário admitir que os resultados têm relação com o modelo escolhido. Radchenko (2004) através de um modelo ajustamento parcial estudou a relação entre a assimetria nos preços da gasolina e a volatilidade nos preços do petróleo mostrando que existe uma forte relação negativa entre os dois. Suas conclusões foram no sentido de que o grau de assimetria pode ser atribuído a uma rápida resposta dos preços da gasolina a um aumento da volatilidade nos preços do petróleo.…”

Section: Introductionunclassified

Testando a assimetria nos preços da gasolina brasileira

Uchôa¹

2008

Rev. Bras. Econ.

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Este trabalho tem como objetivo desenvolver uma análise dos preços da gasolina brasileira, evidenciando uma relação de equilíbrio não-linear com os preços do petróleo no mercado internacional e com a taxa de câmbio. Os resultados mostram que preços da gasolina recuperam, em média, 90% das discrepâncias negativas de um período para outro. No entanto, apenas 5% das diferenças positivas são ajustadas, ou ainda não são recuperadas. INTRODUÇÃOO comportamento dos preços do petróleo no comércio internacional influencia, de forma decisiva, os preços de seus derivados na maioria das nações. Mesmo num país como o Brasil onde as importações em 2003 responderam por apenas 9% do que é consumido internamente, os preços da gasolina não ficam indiferentes às variações dos preços do petróleo no mercado mundial Petrobrás (2005).Uma trajetória de alta no preço do petróleo é acompanhada de perto por toda a sociedade, esperando seus reflexos imediatos no nível de preços dos combustíveis, sendo que, um dos impactos mais sentidos é, sem dúvida, sobre a gasolina. Mas, o que ocorre quando o sentido é inverso, isto é, e quando há uma queda nos preços do petróleo?A questão que se coloca neste caso é sobre o tipo de ajustamento observado nos preços da gasolina. E não é difícil perceber que estes não ocorrem de maneira simétrica. Uma piora no cenário econômico, ou seja, a elevação na cotação dos preços petróleo e/ou desvalorização do câmbio, por exemplo, não demora muito para começar a pressionar por um aumento nos preços dos combustíveis no mercado

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“…On the country level the biggest oil reserves belong to Saudi Arabia and Venezuela (262.6 and 211.17 bb in 2011 respectively) together owning around one third of world oil. Among ten countries with biggest reserves are also Canada, Gulf states (Iraq, Iran, Kuwait, UAE), Russia, Libya and Nigeria [4,5,6]. …”

Section: Introductionmentioning

confidence: 99%

Application of Markov Model in Crude Oil Price Forecasting

Isah

Bon

2017

PoS

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Abstract.Crude oil is an important energy commodity to mankind. Several causes have made crude oil prices to be volatile. The fluctuation of crude oil prices has affected many related sectors and stock market indices. Hence, forecasting the crude oil prices is essential to avoid the future prices of the non-renewable natural resources to rise. In this study, daily crude oil prices data was obtained from WTI dated 2 January to 29 May 2015. We used Markov Model (MM) approach in forecasting the crude oil prices. In this study, the analyses were done using EViews and Maple software where the potential of this software in forecasting daily crude oil prices time series data was explored. Based on the study, we concluded that MM model is able to produce accurate forecast based on a description of history patterns in crude oil prices.

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Oil price volatility and the asymmetric response of gasoline prices to oil price increases and decreases

Cited by 151 publications

References 25 publications

Competition and price asymmetries in the Greek oil sector: an empirical analysis on gasoline market

Competition and price asymmetries in the Greek oil sector: an empirical analysis on gasoline market

Testando a assimetria nos preços da gasolina brasileira

Application of Markov Model in Crude Oil Price Forecasting

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