Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries
This paper aims to provide those working in developing countries with a review of the issues that can help address the four questions: 1) are petroleum product margins excessively high at certain times?; 2) Does asymmetry of price responses to cost...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2010/06/12674738/rockets-feathers-asymmetric-petroleum-product-pricing-developing-countries http://hdl.handle.net/10986/18287 |
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okr-10986-18287 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADVERSE EFFECTS ANTITRUST LAWS APPROACH AVERAGE COSTS AVERAGE PRICE AVERAGE PRICES BARRIERS TO ENTRY BENCHMARK BRAND BRAND LOYALTY COMPETITIVE FRINGE CONSTANT RETURNS TO SCALE CONSUMER PRICES CONSUMERS CONTROLLED PRICES COST INCREASE COST INCREASES CRUDE OIL DAMAGES DEMAND CURVE DEMAND DECLINES DEREGULATION DIESEL DISEQUILIBRIUM DOMESTIC REFINING DUOPOLY ECONOMETRIC MODELS ECONOMIES OF SCALE EQUILIBRIUM EQUILIBRIUM PRICES EXCESS PROFITS EXCHANGE RATES EXTERNALITIES FUEL FUEL OIL FUEL SPECIFICATIONS FUELS GAS GASOLINE MARKET GASOLINE PRICE GASOLINE PRICES GOVERNMENT REGULATIONS INPUT PRICES INTERNATIONAL MARKET INVENTORIES INVENTORY KEROSENE LAW OF SUPPLY LNG MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET CONCENTRATION MARKET DISRUPTION MARKET FAILURES MARKET FORCES MARKET POWER MARKET SHARE MARKET STRUCTURE MARKETING MENU COSTS MERGERS MONOPOLIES MONOPOLY MONOPOLY PRICES NORMAL PROFIT NORMAL PROFITS OIL OIL COMPANIES OIL MARKETS OIL PRICE OIL PRICES OIL SUPPLY OLIGOPOLY PERFECT COMPETITION PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM GAS PETROLEUM MARKETS PETROLEUM PRODUCT SUPPLY PETROLEUM PRODUCTS PIPELINE POWER GENERATION PREDATORY PRICING PRICE ADJUSTMENTS PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE CONTROL PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INCREASES PRICE LEVELS PRICE LISTS PRICE OF OIL PRICE SETTING PRICE TAKERS PRICE VOLATILITY PRICE WAR PRICE WARS PRICED PRICING POLICY PRICING STRATEGIES PRICING STRATEGY PRODUCT MARKET PRODUCT MARKETS PRODUCT PRICING PROFIT MARGIN PROFIT MARGINS PROFIT MAXIMIZATION PURCHASING REFINED PRODUCTS REGULAR GASOLINE RETAIL RETAIL MARKETING RETAIL PRICE RETAIL PRICES SAFETY PROCEDURES SALE SALES SALES ARRANGEMENTS STICKY PRICES STORAGE CAPACITY SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY CONTRACT SUPPLY ELASTICITY TACIT COLLUSION TOTAL COSTS VALUATION WHOLESALE DISTRIBUTORS WHOLESALE GASOLINE WHOLESALE PRICES WHOLESALERS |
| spellingShingle |
ADVERSE EFFECTS ANTITRUST LAWS APPROACH AVERAGE COSTS AVERAGE PRICE AVERAGE PRICES BARRIERS TO ENTRY BENCHMARK BRAND BRAND LOYALTY COMPETITIVE FRINGE CONSTANT RETURNS TO SCALE CONSUMER PRICES CONSUMERS CONTROLLED PRICES COST INCREASE COST INCREASES CRUDE OIL DAMAGES DEMAND CURVE DEMAND DECLINES DEREGULATION DIESEL DISEQUILIBRIUM DOMESTIC REFINING DUOPOLY ECONOMETRIC MODELS ECONOMIES OF SCALE EQUILIBRIUM EQUILIBRIUM PRICES EXCESS PROFITS EXCHANGE RATES EXTERNALITIES FUEL FUEL OIL FUEL SPECIFICATIONS FUELS GAS GASOLINE MARKET GASOLINE PRICE GASOLINE PRICES GOVERNMENT REGULATIONS INPUT PRICES INTERNATIONAL MARKET INVENTORIES INVENTORY KEROSENE LAW OF SUPPLY LNG MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET CONCENTRATION MARKET DISRUPTION MARKET FAILURES MARKET FORCES MARKET POWER MARKET SHARE MARKET STRUCTURE MARKETING MENU COSTS MERGERS MONOPOLIES MONOPOLY MONOPOLY PRICES NORMAL PROFIT NORMAL PROFITS OIL OIL COMPANIES OIL MARKETS OIL PRICE OIL PRICES OIL SUPPLY OLIGOPOLY PERFECT COMPETITION PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM GAS PETROLEUM MARKETS PETROLEUM PRODUCT SUPPLY PETROLEUM PRODUCTS PIPELINE POWER GENERATION PREDATORY PRICING PRICE ADJUSTMENTS PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE CONTROL PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INCREASES PRICE LEVELS PRICE LISTS PRICE OF OIL PRICE SETTING PRICE TAKERS PRICE VOLATILITY PRICE WAR PRICE WARS PRICED PRICING POLICY PRICING STRATEGIES PRICING STRATEGY PRODUCT MARKET PRODUCT MARKETS PRODUCT PRICING PROFIT MARGIN PROFIT MARGINS PROFIT MAXIMIZATION PURCHASING REFINED PRODUCTS REGULAR GASOLINE RETAIL RETAIL MARKETING RETAIL PRICE RETAIL PRICES SAFETY PROCEDURES SALE SALES SALES ARRANGEMENTS STICKY PRICES STORAGE CAPACITY SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY CONTRACT SUPPLY ELASTICITY TACIT COLLUSION TOTAL COSTS VALUATION WHOLESALE DISTRIBUTORS WHOLESALE GASOLINE WHOLESALE PRICES WHOLESALERS Bacon, Robert Kojima, Masami Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries |
| relation |
Extractive industries for development
series;no. 18 |
| description |
This paper aims to provide those working
in developing countries with a review of the issues that can
help address the four questions: 1) are petroleum product
margins excessively high at certain times?; 2) Does
asymmetry of price responses to cost changes exist and, if
so, what are the possible reasons that could account for
it?; 3) If there is asymmetry of petroleum product price
responsiveness, how large is the cost to consumers compared
with symmetric pricing?; And 4) what policies can combat
excessive petroleum product margins? The discussion focuses
mainly on liberalized markets, because, in markets subject
to price control, the pattern of responses of prices to cost
changes will be determined partially or largely by the
Government. Chapter one describes asymmetric pricing and the
structure of the oil market, focusing in particular on the
links between the retail sector and the rest of the chain of
supply. The chapter next briefly reviews types of
legislation that exist in liberalized markets to protect
consumers from monopolistic or collusive behavior in
petroleum products pricing. Chapter two describes different
types of firms' pricing behavior, including both
collusive and non collusive behavior, and provides an
overview of how lags in pricing behavior arise and the
reasons they can lead to asymmetry. Following this section
on theories, econometric studies testing for the presence of
asymmetric pricing are reviewed, with special reference to
those studies carried out in developing countries. Based on
these models, a sample calculation of the extra costs to the
consumer of asymmetric pricing relative to those under
symmetric pricing is given, including an illustration based
on a specially constructed estimate for Guatemala. Chapter
three provides an overview of policy responses to asymmetric pricing. |
| format |
Publications & Research :: Working Paper |
| author |
Bacon, Robert Kojima, Masami |
| author_facet |
Bacon, Robert Kojima, Masami |
| author_sort |
Bacon, Robert |
| title |
Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries |
| title_short |
Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries |
| title_full |
Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries |
| title_fullStr |
Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries |
| title_full_unstemmed |
Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries |
| title_sort |
rockets and feathers : asymmetric petroleum product pricing in developing countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2010/06/12674738/rockets-feathers-asymmetric-petroleum-product-pricing-developing-countries http://hdl.handle.net/10986/18287 |
| _version_ |
1764435759996076032 |
| spelling |
okr-10986-182872021-04-23T14:03:34Z Rockets and Feathers : Asymmetric Petroleum Product Pricing in Developing Countries Bacon, Robert Kojima, Masami ADVERSE EFFECTS ANTITRUST LAWS APPROACH AVERAGE COSTS AVERAGE PRICE AVERAGE PRICES BARRIERS TO ENTRY BENCHMARK BRAND BRAND LOYALTY COMPETITIVE FRINGE CONSTANT RETURNS TO SCALE CONSUMER PRICES CONSUMERS CONTROLLED PRICES COST INCREASE COST INCREASES CRUDE OIL DAMAGES DEMAND CURVE DEMAND DECLINES DEREGULATION DIESEL DISEQUILIBRIUM DOMESTIC REFINING DUOPOLY ECONOMETRIC MODELS ECONOMIES OF SCALE EQUILIBRIUM EQUILIBRIUM PRICES EXCESS PROFITS EXCHANGE RATES EXTERNALITIES FUEL FUEL OIL FUEL SPECIFICATIONS FUELS GAS GASOLINE MARKET GASOLINE PRICE GASOLINE PRICES GOVERNMENT REGULATIONS INPUT PRICES INTERNATIONAL MARKET INVENTORIES INVENTORY KEROSENE LAW OF SUPPLY LNG MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET CONCENTRATION MARKET DISRUPTION MARKET FAILURES MARKET FORCES MARKET POWER MARKET SHARE MARKET STRUCTURE MARKETING MENU COSTS MERGERS MONOPOLIES MONOPOLY MONOPOLY PRICES NORMAL PROFIT NORMAL PROFITS OIL OIL COMPANIES OIL MARKETS OIL PRICE OIL PRICES OIL SUPPLY OLIGOPOLY PERFECT COMPETITION PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM GAS PETROLEUM MARKETS PETROLEUM PRODUCT SUPPLY PETROLEUM PRODUCTS PIPELINE POWER GENERATION PREDATORY PRICING PRICE ADJUSTMENTS PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE CONTROL PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INCREASES PRICE LEVELS PRICE LISTS PRICE OF OIL PRICE SETTING PRICE TAKERS PRICE VOLATILITY PRICE WAR PRICE WARS PRICED PRICING POLICY PRICING STRATEGIES PRICING STRATEGY PRODUCT MARKET PRODUCT MARKETS PRODUCT PRICING PROFIT MARGIN PROFIT MARGINS PROFIT MAXIMIZATION PURCHASING REFINED PRODUCTS REGULAR GASOLINE RETAIL RETAIL MARKETING RETAIL PRICE RETAIL PRICES SAFETY PROCEDURES SALE SALES SALES ARRANGEMENTS STICKY PRICES STORAGE CAPACITY SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY CONTRACT SUPPLY ELASTICITY TACIT COLLUSION TOTAL COSTS VALUATION WHOLESALE DISTRIBUTORS WHOLESALE GASOLINE WHOLESALE PRICES WHOLESALERS This paper aims to provide those working in developing countries with a review of the issues that can help address the four questions: 1) are petroleum product margins excessively high at certain times?; 2) Does asymmetry of price responses to cost changes exist and, if so, what are the possible reasons that could account for it?; 3) If there is asymmetry of petroleum product price responsiveness, how large is the cost to consumers compared with symmetric pricing?; And 4) what policies can combat excessive petroleum product margins? The discussion focuses mainly on liberalized markets, because, in markets subject to price control, the pattern of responses of prices to cost changes will be determined partially or largely by the Government. Chapter one describes asymmetric pricing and the structure of the oil market, focusing in particular on the links between the retail sector and the rest of the chain of supply. The chapter next briefly reviews types of legislation that exist in liberalized markets to protect consumers from monopolistic or collusive behavior in petroleum products pricing. Chapter two describes different types of firms' pricing behavior, including both collusive and non collusive behavior, and provides an overview of how lags in pricing behavior arise and the reasons they can lead to asymmetry. Following this section on theories, econometric studies testing for the presence of asymmetric pricing are reviewed, with special reference to those studies carried out in developing countries. Based on these models, a sample calculation of the extra costs to the consumer of asymmetric pricing relative to those under symmetric pricing is given, including an illustration based on a specially constructed estimate for Guatemala. Chapter three provides an overview of policy responses to asymmetric pricing. 2014-05-13T20:52:20Z 2014-05-13T20:52:20Z 2010-06 http://documents.worldbank.org/curated/en/2010/06/12674738/rockets-feathers-asymmetric-petroleum-product-pricing-developing-countries http://hdl.handle.net/10986/18287 English en_US Extractive industries for development series;no. 18 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |