Data-Driven Investigation of Pricing Behaviors in the Retail Gasoline Market

Abstract This study investigates pricing behaviors of retail gasoline markets in two geographically different regions of South Korea. When one market is regarded as competitive and the other market is uncertain about its level of competition, the test method to compare the former with the latter is introduced and the empirical result is suggested here. This test method seems to be simple but powerful since the historical data on prices is only required to proceed this test method. Accordingly, this study contributes to the economic literature in respect of introducing this efficient novel method and suggesting the empirical result. JEL Classification: C63, C71, C81