Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86932
Authors: 
Faber, Riemer P.
Janssen, Maarten C.W.
Year of Publication: 
2008
Series/Report no.: 
Tinbergen Institute Discussion Paper 08-116/1
Abstract: 
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.
Subjects: 
gasoline markets
collusion
price setting
suggested prices
JEL: 
L11
L42
L65
Document Type: 
Working Paper

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