<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In this paper, we constructed a theoretical model of strategic pricing behavior of the players in a Polish wholesale fuel market. This model is consistent with the characteristics of the industry, the wholesale market, and the players. The model is based on the standard methodology of repeated games with a built-in adjustment to a focal price, which resembles the Import Parity Pricing (IPP) mechanism. From the equilibrium of the game, we conclude that the focal price policy implies a parallel pricing strategic behavior on the market.</p></abstract>

In this paper, we constructed a theoretical model of strategic pricing behavior of the players in a Polish wholesale fuel market. This model is consistent with the characteristics of the industry, the wholesale market, and the players. The model is based on the standard methodology of repeated games with a built-in adjustment to a focal price, which resembles the Import Parity Pricing (IPP) mechanism. From the equilibrium of the game, we conclude that the focal price policy implies a parallel pricing strategic behavior on the market.

Theoretical Model of Pricing Behavior on the Polish Wholesale Fuel Market

Nicolas Copernicus University in Toruń, Department of Econometrics and Statistics, Faculty of Economic Sciences and Management, Gagarina 13a, 87-100 Toruń,

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Theoretical Model of Pricing Behavior on the Polish Wholesale Fuel Market"}

In this paper, we constructed a theoretical model of strategic pricing behavior of the players in a Polish wholesale fuel market. This model is consistent with...

Theoretical Model of Pricing Behavior on the Polish Wholesale Fuel Market

Pubblicato online: 30 dic 2016

Pagine: 286 - 300

Ricevuto: 03 nov 2015

Accettato: 27 giu 2016

DOI: https://doi.org/10.1515/foli-2016-0019

Parole chiave
wholesale fuel market, strategic behavior, focal pricing game, parallel pricing

© 2016 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Theoretical Model of Pricing Behavior on the Polish Wholesale Fuel Market

Pubblicato online: 30 dic 2016

Pagine: 286 - 300

Ricevuto: 03 nov 2015

Accettato: 27 giu 2016

DOI: https://doi.org/10.1515/foli-2016-0019

Parole chiavewholesale fuel market, strategic behavior, focal pricing game, parallel pricing

© 2016 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Parole chiave
wholesale fuel market, strategic behavior, focal pricing game, parallel pricing