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PRICES AND CONCENTRATION ON THE HUNGARIAN RETAIL MARKET FOR MOTOR FUELS (Arak es koncentracio a magyar kiskereskedelmi uzemanyagpiacon)

100%
Farkas D., Csorba G., Koltay K.
Kozgazdasagi Szemle (Economic Review)
|
2009
|
vol. 56
|
issue 12
1088-1109
EN
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.
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