Coordinate to obfuscate? The role of prior announcements of recommended prices

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 198
Issue: C

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Firms may want to coordinate industry-wide price jumps that are predictable for rivals, however, unpredictable for consumers. We show how such coordination is carried out in Norwegian gasoline retailing. Overnight, the market leader initiated an equilibrium transition from regular to non-regular price jumps Prior announcements of a non-transaction price variable, recommended prices, are used to coordinate the timing and the level of industry-wide price jumps.

Technical Details

RePEc Handle
repec:eee:ecolet:v:198:y:2021:i:c:s0165176520304407
Journal Field
General
Author Count
2
Added to Database
2026-01-25