Orlen or Lotos? Which is Setting Prices at the Wholesale Market for Unleaded Petrol in Poland?

• Autorzy: Paweł Miłobędzki
• Języki publikacji: EN

Abstrakty

EN

The wholesale market for unleaded petrol in Poland is dominated by its two producers, PKN Orlen S.A. and Lotos S.A. Their share in the overall supply amounts to 84 per cent. The remaining 16 per cent is split among many importers, none of which has a significant market power. Since the barriers of entry into domestic market are relatively weak, it seems to have been duopolistic with the prevailing price-type competition. Each duopolist while setting its price, apart from its vis-à-vis competitor's behaviour, has to account for the world price of unleaded petrol and the exchange rate of U.S. dollar to Polish zloty in which the import contracts are settled. The aim of the paper is to reveal the price-setting mechanism in this market. In particular the problem of price leadership is addressed. In doing so it is demonstrated that the prices of both Polish producers, the world price, and the exchange rate are all integrated of order one variables. (fragment of text)

Słowa kluczowe

EN

Fuel market; Fuel prices; Price mechanism

PL

Rynek paliw; Ceny paliw; Mechanizmy cenowe

• Czasopismo: Dynamic Econometric Models
• Rocznik: 2008
• Tom: 8
• Strony: 37--43

Twórcy

autor

Paweł Miłobędzki

• University of Gdansk, Poland

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