Price effects of calling out market power: A study of the COVID-19 oil price shock

IF 1.2 4区 管理学 Q3 ECONOMICS
Aaron Barkley, David P. Byrne, Xiaosong Wu
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引用次数: 0

Abstract

Governments often make public announcements that call into question firms' misuse of market power. Yet little is known about how firms respond to them. We study gasoline retailers' price responses to antitrust announcements shaming them for price gouging during the COVID-19 pandemic. We identify price effects using a high-frequency event-study leveraging unique real-time station-level price data and well-identified, discrete antitrust announcements. We find evidence of announcement effects that depend on firms' preannouncement margins and hence exposure to being publicly shamed. Public statements by antitrust questioning firms' misuse of market power can indeed contain signals that affect equilibrium outcomes.

Abstract Image

呼唤市场力量的价格效应:COVID-19油价冲击研究
政府经常发表公开声明,质疑企业滥用市场力量的行为。然而,人们对企业如何应对这些变化知之甚少。我们研究了汽油零售商在COVID-19大流行期间因价格欺诈而蒙羞的反垄断公告后的价格反应。我们利用利用独特的实时站级价格数据和识别良好的离散反垄断公告的高频事件研究来确定价格影响。我们发现了公告效应的证据,这取决于公司的公告前利润,因此暴露于公开羞辱。反垄断质疑公司滥用市场力量的公开声明确实可以包含影响均衡结果的信号。
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来源期刊
CiteScore
3.20
自引率
5.30%
发文量
43
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