In examining the relations of prices and concentration on the Hungarian retail market for motor fuels, the study shows how local differences in concentration levels explain only a small proportion of the sizeable contemporaneous price differences between different localities. For these price differences can be explained well as retail price reactions to wholesale price changes. There is a significant negative relation between retail price (or price margin) and the concentration on local markets (measured in competing filling stations), but in practical sense a loos relation can be shown. Nor does the symmetric price transmission at local level show deviations, and its degree is not influenced by the local concentration.
David Farkas, no address given, contact the journal editor
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