FIBE publishers ´award to Nguyen-Ones
PhD candidate Mai Nguyen-Ones won this year's FIBE award for her paper «Price coordination with prior announcements in retail gasoline markets».
«Price coordination with prior announcements in retail gasoline markets» examines how price coordination, and importantly, coordination on price restorations, is carried out in retail gasoline markets. In the studied market, one firm breaches a fourteen-year lasting regular price cycle overnight by publicly announcing a change to its retail price policy. Prior to the announcement, the regular cycle occurred across brands and all over the country.
Mai Nguyen-Ones shows that the recommended price of this particular company, which is publicly available on the company’s website, serves two functions for its network of retail stations.
First, it determines the price restoration level.
Second, it serves as a signal of when to implement a restoration day: Every time this company announces an adjustment to the recommended price in the early morning, price restoration is implemented the following forenoon.
Mai Nguyen-Ones further shows that other companies are following the new practice as well.
Hence, a new way to coordinate on prices and synchronize price restorations inter-brand and across local markets has emerged, using prior announcements of the price leader’s recommended price as a signaling device.
From FIBE 2012 the award has been jointly financed by the publishers Cappelen Damm Akademisk, Fagbokforlaget, Gyldendal Akademisk and Universitetsforlaget. The prize is NOK 20,000 and is awarded during the conference. The award competition is open to researchers who are under 40 years of age on the application deadline date. In the event of multiple authors, all the authors must satisfy the age requirement.