Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266973 
Year of Publication: 
2021
Citation: 
[Journal:] EconomiA [ISSN:] 1517-7580 [Volume:] 22 [Issue:] 1 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2021 [Pages:] 53-70
Publisher: 
Elsevier, Amsterdam
Abstract: 
We aim to evaluate two different econometric screens for identifying anti-competitive behavior in the fuel retail market: (i) The Markov-Switching GARCH (MS-GARCH) Models; (ii) The Local Gaussian Correlation (LGC) approach. Using the gasoline cartel judged and condemned in Brasília as a benchmark, our results indicate that the LGC model, based on the correlation of the resale price margin and price variability, may provide a biased likelihood as well as an incorrect identification of cartel behavior over time. The MSGARCH model, based only on the log deviation of the average gasoline sales price, showed better accuracy in cartel detection.
Subjects: 
Cartel Screen
Price dynamics
Fuel retail market
JEL: 
L41
L95
C22
C63
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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