Speed of Adjustment & Market Structure: A Study of the Gasoline Market in Germany
The oil price collapse of 1986 revived once again the old interest in the process of price formation in the petroleum industry which has long attracted suspicions of anti-competitive behaviour. Indeed, the first and the most famous case to attract economists’ attention after the adoption of the Sharman Act in 1870, the first example of anti-trust legislation in the USA, was that of Standard Oil, charged in 191 1 with monopolizing the petroleum market by acquiring a large number of other companies. By this time, Standard Oil controlled some 90 percent of the US oil industry, both upstream and downstream.
Categories:
Country and Regional Studies , Energy Economics , Finance , Oil
Tags:
Asymmetrical Reaction , Cost changes , Econometric Model , Gasoline Market , Germany , Lag , Oligopoly , Price adjustment , Rigidity , Speed of Adjustment