Asymmetric Diesel Retail Pricing Strategies: Depending On Brands and Population Densities?

摘要

Asymmetric cost pass-through between crude oil and retail fuel prices ("Rockets and Feathers") has been analysed for different countries and time periods. However, few studies have been conducted for the German market. Furthermore, this study differentiates between company types and regions in this context. We compare price setting behaviour of independent and major brand stations following oil price changes. Furthermore, we differentiate between regions with higher and lower population densities. We establish an error correction model with a novel data set from the years 2011 to 2012. Our results confirm significant differences between price setting behaviour after oil price changes of major brand stations and other stations.