Price transmission and local market power: empirical evidence from the Austrian gasoline market

Information and Price Dispersion: Theory and Evidence

“…Extensions include models where the first price quote is costly(Janssen et al, 2005), recall is costly(Janssen and Parakhonyak, 2014), nonshoppers do not know the firms' underlying production costs(Janssen et al, 2011), nonshoppers only know the support of the price distribution(Parakhonyak, 2014), and search costs are heterogeneous(Stahl, 1996;Chen and Zhang, 2011).7 Indeed, Byrne and de Roos (2017) provide empirical evidence that consumers are more likely to use a gasoline price comparison website when prices are more dispersed. Such websites did not exist during our sample period(1999)(2000)(2001)(2002)(2003)(2004)(2005).8 Daily data inLoy et al (2018) on a subsample of 282 gasoline stations in Austria between January 2003 and December 2004 show that the median gasoline station changes prices at least twice a week, and that 90% of stations change prices at least once a week. Prices are thus very unlikely to be the same between two purchases.…”

When is the electric vehicle market self-sustaining? Evidence from Norway

“…We follow Springel (2019) and multiply the fuel price with the average density of fuel stations at the municipal level to approximate the level of local competition. 6 We expect that a lower fuel station density leads to higher and less volatile prices (Loy et al, 2018) and, hence, to a higher EV stock.…”

Vertical price transmission in Swiss dairy and cheese value chains

“…The milk they deliver could be processed into cheap milk powder for world market export or into premium ice cream. The high concentration at the processor level presumably allows for the execution of market power, but again, the direction and strength of the effect on price transmission are not so clear, and empirical evidence is mixed (e.g., Cutts and Kirsten 2006;Loy et al 2018).…”