Efectos espaciales en la formación de precios en mercados minoristas de Gas Natural Vehicular (Spatial Effects in Prices in Natural Gas Retail Markets)

30 Pages Posted: 20 Jul 2015

See all articles by John Garcia

John Garcia

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Carlos Montenegro

Independent

Hermilson Velasquez

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Date Written: July 19, 2015

Abstract

Spanish Abstract: El mecanismo de fijación de precio de venta de gas natural vehicular (GNV) en las Estaciones de Servicio (EDS ́s) en Colombia se asemeja al de un modelo teórico oligopolístico tipo Bertrand, en el cual se identifica una empresa líder en el mercado y otras seguidoras, precio- aceptantes con un alto mark up de beneficios. La ubicación geográfica de las EDS ́S, genera estrategias que influyen en la formación del precio. En esta investigación se diseña una matriz de contigüidad espacial, que recoge características socio-económicas y de distancia relacionadas con la ubicación geográfica de las EDS ́s y se utiliza un modelo de panel espacial del tipo Durbin, que además incluye variables fundamentales para explicar la formación del precio del GNV.

English Abstract: The gas distribution system for natural gas vehicles (NGV) in the Service Stations (EDS) in Colombia is highly concentrated, which gives the retail distributors market power. The pricing mechanism appears to approximate a Bertrand type of oligopolistic model, with a dominant firm setting the prices. The geographical location of the EDS generates strategies that influence price formation. In this research, a spatial contiguity matrix is designed, which includes socio-economic and distance characteristics, related to the EDS geographic location. We use a spatial panel model of Durbin type, which includes fundamental variables to explain the GNV price formation.

Note: Downloadable document is in Spanish.

Keywords: Natural Gas Vehicles, Retail Market, Spatial Panel, Price Formation

JEL Classification: D43, C23

Suggested Citation

Garcia, John and Montenegro, Carlos and Velasquez, Hermilson, Efectos espaciales en la formación de precios en mercados minoristas de Gas Natural Vehicular (Spatial Effects in Prices in Natural Gas Retail Markets) (July 19, 2015). Center for Research in Economics and Finance (CIEF), Working Papers, No. 15-13. Available at SSRN: https://ssrn.com/abstract=2633161 or http://dx.doi.org/10.2139/ssrn.2633161

John Garcia (Contact Author)

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

Carlos Montenegro

Independent ( email )

Hermilson Velasquez

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

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