Seminar – Competition & Pass-through: Evidence from the Greek Islands

Dr Christos Genakos, Cambridge Judge Business School

Understanding how firms pass cost shocks through to prices under different competitive conditions is of fundamental importance across many fields in economics. Yet, despite theoretical advances, there is very little empirical evidence on this question. In this paper, we measure how pass-through varies with competition in isolated markets of different size. Using daily pricing data from gas stations, we study how changes in excise duty tax across petroleum products was pass-through to retail prices across different Greek islands with a different number of competitors.

Speaker bio

Understanding how firms pass cost shocks through to prices under different competitive conditions is of fundamental importance across many fields in economics. Yet, despite theoretical advances, there is very little empirical evidence on this question.

In this paper, we measure how pass-through varies with competition in isolated markets of different size. Using daily pricing data from gas stations, we study how changes in excise duty tax across petroleum products was pass-through to retail prices across different Greek islands with a different number of competitors.