English, Article edition: Why Fuel Surcharges may be Anticompetitive Vladimir Karamychev; Peran van Reeven

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Why Fuel Surcharges may be Anticompetitive
Author
  • Vladimir Karamychev
  • Peran van Reeven
Physical Description
  • article
Notes
  • With the increase in the price of oil, fuel surcharges have become a common and widely used practice in the transportation industry. Firms ask consumers to pay these surcharges in addition to the base price. Assuming that (i) fuel prices randomly fluctuate, (ii) fuel prices affect firms' costs differently, and (iii) firms pass on changes in their fuel costs to consumers, we show that the practice of fuel surcharging increases firms' profits, and constitutes an anticompetitive behaviour. © 2009 LSE and the University of Bath
  • RePEc:tpe:jtecpo:v:43:y:2009:i:2:p:141-155
Language
  • English
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