An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model

Ronggang Cong

doi:10.1109/BMEI.2010.5639632

An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model

Ronggang Cong^*

^*Corresponding author for this work

North China Electric Power University

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

1 Citation (Scopus)

Abstract

Since 1998, the pricing mechanism of China refined oil market has reformed four times. Market pricing will be the future trend. This paper uses the method of agent-based computational economics to construct a free gasoline market model. By simulations of the gasoline market at different levels of crude oil price, a quadratic equation which can describe the survival rate of consumers is obtained. Based on a dummy variable model, we find that when the decisions of consumers are constrained by their income, the margin impacts of crude oil price, income and rigid demand on consumer welfares become smaller.

Original language	English
Title of host publication	Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010
Pages	2884-2892
Number of pages	9
DOIs	https://doi.org/10.1109/BMEI.2010.5639632
Publication status	Published - 2010
Externally published	Yes
Event	3rd International Conference on BioMedical Engineering and Informatics, BMEI 2010 - Yantai, China Duration: 16 Oct 2010 → 18 Oct 2010

Publication series

Name	Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010
Volume	7

Conference

Conference	3rd International Conference on BioMedical Engineering and Informatics, BMEI 2010
Country/Territory	China
City	Yantai
Period	16/10/10 → 18/10/10

Keywords

Belief learning
Gasoline market
Income constraints
Rigid demand
Simulations based on multi-agent

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10.1109/BMEI.2010.5639632

Cite this

Cong, R. (2010). An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model. In Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010 (pp. 2884-2892). Article 5639632 (Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010; Vol. 7). https://doi.org/10.1109/BMEI.2010.5639632

@inproceedings{4245271989b44e41ae141d19df98383f,

title = "An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model",

abstract = "Since 1998, the pricing mechanism of China refined oil market has reformed four times. Market pricing will be the future trend. This paper uses the method of agent-based computational economics to construct a free gasoline market model. By simulations of the gasoline market at different levels of crude oil price, a quadratic equation which can describe the survival rate of consumers is obtained. Based on a dummy variable model, we find that when the decisions of consumers are constrained by their income, the margin impacts of crude oil price, income and rigid demand on consumer welfares become smaller.",

keywords = "Belief learning, Gasoline market, Income constraints, Rigid demand, Simulations based on multi-agent",

author = "Ronggang Cong",

year = "2010",

doi = "10.1109/BMEI.2010.5639632",

language = "English",

isbn = "9781424464968",

series = "Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010",

pages = "2884--2892",

booktitle = "Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010",

note = "3rd International Conference on BioMedical Engineering and Informatics, BMEI 2010 ; Conference date: 16-10-2010 Through 18-10-2010",

}

Cong, R 2010, An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model. in Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010., 5639632, Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010, vol. 7, pp. 2884-2892, 3rd International Conference on BioMedical Engineering and Informatics, BMEI 2010, Yantai, China, 16/10/10. https://doi.org/10.1109/BMEI.2010.5639632

An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model. / Cong, Ronggang.
Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010. 2010. p. 2884-2892 5639632 (Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010; Vol. 7).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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AB - Since 1998, the pricing mechanism of China refined oil market has reformed four times. Market pricing will be the future trend. This paper uses the method of agent-based computational economics to construct a free gasoline market model. By simulations of the gasoline market at different levels of crude oil price, a quadratic equation which can describe the survival rate of consumers is obtained. Based on a dummy variable model, we find that when the decisions of consumers are constrained by their income, the margin impacts of crude oil price, income and rigid demand on consumer welfares become smaller.

KW - Belief learning

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KW - Income constraints

KW - Rigid demand

KW - Simulations based on multi-agent

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Cong R. An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model. In Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010. 2010. p. 2884-2892. 5639632. (Proceedings - 2010 3rd International Conference on Biomedical Engineering and Informatics, BMEI 2010). doi: 10.1109/BMEI.2010.5639632

An analysis for monopoly premium and consumer welfare in the gasoline market of China: Results from a multi-agent model

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