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An estimation on the survival of retail gasoline prices

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dc.contributor.author Cerpa, Javier
dc.contributor.author Perticara, Marcela
dc.contributor.author Saavedra, Eduardo
dc.date.accessioned 2015-03-12T23:35:31Z
dc.date.available 2015-03-12T23:35:31Z
dc.date.issued 2013
dc.identifier.citation Documentos de Investigación 298: 2013, p. 1-21 es_CL
dc.identifier.uri http://repositorio.uahurtado.cl/handle/11242/6638
dc.description.abstract This paper studies how competition works in the fuel industry, by estimating the survival prices for the Chilean retail gasoline markets. We use a rich data set of prices available online that tracks changes in fuel costs. Every Thursday at zero hour, publicly announced new costs are in effect, thus gas-stations react by changing their prices. We estimate a piecewise exponential model, separating for the different gasoline qualities (93, 95 or 97) and for diesel. The evidence shows that retail prices slowly change during the following days to the announcement, and that this behavior is asymmetric regarding the sign and the magnitude in costs changes. The asymmetric pricing response is explained by characteristics at the gasstation level, such as brand, country’s geographic region, and some amenities offered by gasstations. Given the structure of these markets, the most reasonable explanation for this asymmetric behavior is the strategic use of pricing as a reaction to soft competition. es_CL
dc.language.iso en_US es_CL
dc.publisher Universidad Alberto Hurtado. Facultad de Economía y Negocios es_CL
dc.subject Asymmetric pricing es_CL
dc.subject Gasoline es_CL
dc.subject Fuel es_CL
dc.subject Survival es_CL
dc.subject Duration es_CL
dc.subject Hazard rate es_CL
dc.subject Chile es_CL
dc.title An estimation on the survival of retail gasoline prices es_CL
dc.type Artículo es_CL

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