Research On Pricing In Concert Under The Monopoly And Regulation Of China’s Market Of Refined Oil

Oil resources are widely used in various departments of country economy, whichare important and indispensable resources to the social development and economicprogress. Although the market of refined oil is only one part of the oil industry, butwith the upstream and downstream of oil industry closely linked, refined oil productsare more closer to the human live, the fluctuations of refined oil price in the marketwill inevitably affect its upstream and downstream market.Since2009, PetroChina and Sinopec have adjusted the price of refined oilproducts by the same amount synchronous many times, this highly consistent pricebehavior had attracted much public attention. Based on the Game Analysis ofoligopoly market structure, it is concluded that under the restriction of the punishmentpath of repeated game, enterprises from the perspective of long-term profitmaximization will generally cooperate in price. China’s refined oil market is in anoligopoly market structure, product homogeneity and enterprises cost the same,market information can quickly transfer response. Under the motivation of long-termprofit maximization, collective rationality make enterprises break away from theprisoner’s dilemma, and force PetroChina and Sinopec choose to joint pricing, whichnaturally lead to pricing in concert. In addition, at present China’s refined oil markettake the price ceiling control system, because of the Principal-Agent Relationshipcaused information Asymmetry, National Development and Reform Commission(NDRC) cannot accurately obtain the cost of enterprise and the market demandinformation, so it is difficult to make a price which can improve enterprise efficiencyand reduce production cost, and the guide retail price under formulation, transparencyand periodization has the function of price forecast and information exchange, and itplay a significant role in a pricing in concert between PetroChina and Sinopec.Although China’s refined oil market is a duopoly market structure, and price ceilingcontrol can cause or promote pricing in concert, but it’s lack of direct evidence toproof of the pricing in concert between PetroChina and Sinopec is illegal. AlthoughChina’s refined oil market is a duopoly market structure, and price ceiling control can cause or promote pricing in concert, but it’s lack of direct evidence to proof of thepricing in concert between PetroChina and Sinopec is illegal. Maybe the pricing inconcert between PetroChina and Sinopec are the natural selection result under thepresent price regulation system in the game playing of act, and from legalrequirements it does not constitute a violation of course.In order to completely solve the pricing in concert of the market of refined oil inour country, it must form a scientific and efficient a refined oil market competitionenvironment, at the same time to take the following measures: Introduce competitionmechanism to create fair competition market environment in refined oil productmarket; Improve the refined oil market price control mechanism and continue topromote product oil market to a fully open and fully competitive price; Put forwardantitrust enforcement in refined oil market, including supplement and development inlegal provisions,apply the presumption system and inversion system in burden ofproof, encourage the refined oil market of antitrust private litigation, and combineeconomic analysis with legal research in the anti-monopoly law enforcement process.