New York Mark‐Ups on Petroleum Products

27 Pages Posted: 22 Feb 2012

See all articles by Szymon Wlazlowski

Szymon Wlazlowski

Aston University - Aston Business School

Birger Nilsson

Lund University - Department of Economics

Jane M. Binner

University of Birmingham - Department of Accounting and Finance

Monica Giulietti

Aston University - Economics and Strategy Group

Nathan Joseph

affiliation not provided to SSRN

Date Written: March 2012

Abstract

In this paper we analyse rigidities in the behaviour of the mark‐up on regular, midgrade and premium varieties of petrol in the New York area using a set of weekly frequency data and a methodology that analyses the pricing process using deterministic and stochastic techniques. The results are consistent across methodologies and indicate that the speeds of adjustment to the long‐run equilibrium mark‐up differ across varieties of petrol with margins of the premium variety falling faster than they rise, contrary to the popular claim of welfare‐decreasing asymmetries in price transmission.

Suggested Citation

Wlazlowski, Szymon and Nilsson, Birger and Binner, Jane M. and Giulietti, Monica and Joseph, Nathan, New York Mark‐Ups on Petroleum Products (March 2012). The Manchester School, Vol. 80, Issue 2, pp. 145-171, 2012, Available at SSRN: https://ssrn.com/abstract=2009208 or http://dx.doi.org/10.1111/j.1467-9957.2010.02192.x

Szymon Wlazlowski

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

Birger Nilsson

Lund University - Department of Economics ( email )

P.O. Box 7082
S-220 07 Lund
Sweden

Jane M. Binner

University of Birmingham - Department of Accounting and Finance ( email )

Birmingham, B15 2TY
United Kingdom

Monica Giulietti

Aston University - Economics and Strategy Group ( email )

Birmingham B4 7ET
United Kingdom
+44 0 121 204 3107 (Phone)

Nathan Joseph

affiliation not provided to SSRN

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