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Journal : Journal of Economics, Business,

Premium, pertalite or pertamax: an empirical study of Alchian-Allen phenomenon on gasoline consumer behavior Widyastuti, Nur Laila; Hartono, Djoni
Journal of Economics, Business, and Accountancy Ventura Vol. 22 No. 2 (2019): August - November 2019
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v22i2.1697

Abstract

In Indonesia, consumers can choose to consume either high or low quality gasoline based on their preferences. Changing preference to a higher quality that is affected by the declining relative price can lead to an Alchian-Allen (A-A) phenomenon. This study aims to determine whether the A-A Phenomenon occurs on the behavior of consumers before and after the existence of Pertalite. The regression model used is the panel data regressions and the regression result proves that there is an A-A phenomenon in market share in Indonesia before and after Pertalite. This indicates that the high difference of relative prices between high and low quality gasolines has a negative impact towards their relative consumption. Prior to Pertalite, consumers continued changing preference into high quality gasoline in the 2nd and 3rd month intervals when relative price difference decreased. After the existing of Pertalite, consumers did not quickly transfer their preferences from Premium to Pertalite when the relative price declined, so that the A-A phenomenon did not occur in this low and middle grade gasoline consumption pattern. However, Pertamax's consumption to Pertalite increases when the relative price between them declines; thus raising the A-A phenomenon. This implies that the government of Indonesia could use their authority to make arrangements on price differences between gasoline qualities
Premium, pertalite or pertamax: an empirical study of Alchian-Allen phenomenon on gasoline consumer behavior Widyastuti, Nur Laila; Hartono, Djoni
Journal of Economics, Business, and Accountancy Ventura Vol. 22 No. 2 (2019): August - November 2019
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v22i2.1697

Abstract

In Indonesia, consumers can choose to consume either high or low quality gasoline based on their preferences. Changing preference to a higher quality that is affected by the declining relative price can lead to an Alchian-Allen (A-A) phenomenon. This study aims to determine whether the A-A Phenomenon occurs on the behavior of consumers before and after the existence of Pertalite. The regression model used is the panel data regressions and the regression result proves that there is an A-A phenomenon in market share in Indonesia before and after Pertalite. This indicates that the high difference of relative prices between high and low quality gasolines has a negative impact towards their relative consumption. Prior to Pertalite, consumers continued changing preference into high quality gasoline in the 2nd and 3rd month intervals when relative price difference decreased. After the existing of Pertalite, consumers did not quickly transfer their preferences from Premium to Pertalite when the relative price declined, so that the A-A phenomenon did not occur in this low and middle grade gasoline consumption pattern. However, Pertamax's consumption to Pertalite increases when the relative price between them declines; thus raising the A-A phenomenon. This implies that the government of Indonesia could use their authority to make arrangements on price differences between gasoline qualities
Co-Authors A. Awirya, Agni Adiwan Fahlan Aritenang Agni Alam Awirya Agni Alam Awirya Agni Alam Awirya Agni Alam Awirya Ahmad Fahriza Andhiny Adyaharjanti Andrio Firstiana Sukma Aprilina Tri Widyastuti Arianto Patunru Arief A. Yusuf Arief A. Yusuf Arief Anshory Yusuf Audhi Ahmad Balya Azizon, Azizon B. Rakhmawan, Catur Balya, Audhi Ahmad Balya, Audhi Ahmad Budiman, Reza A Budiyanto Budiyanto Budy P. Resosudarmo Budy P. Resosudarmo Bunasor Sanim Dedi Budiman Hakim Dela Maria Ardianti Dewi ANGGRAENI Didi Nuryadin Dini Mulyani Ditya A. Nurdianto Ditya A. Nurdianto Djamester Simarmata eka novitasari Estiana Rusmawati Fazriyan Wardani Adhitya Fazriyan Wardani Adhitya, Fazriyan Wardani Firdaus, Firdaus Adam Haidlir, Banu M Harisuddin Harisuddin Hastuti, Sasmita H Herry Irawan Heru Hermawan Hilma Oktaviani Hutabarat, Marcella Alika Hutabarat, Marcella Alika Ida Bagus Putu Cesario Putra Surayuda Indah Prasetyawati Jamhari Jamhari Jayanti Maharani Kartika Pramahesti Kasri, Rahmatina A Kristanti, Hana Dwi Kuratul Aini Kusdarwati, Eny Laksmono, Bambang S Maemonah, Maemonah Marcella Alika Hutabarat Misdawita Misdawita Misdawita Misdawita Misdawita, Misdawita Mohamad Egi Destiartono Mohamad Ikhsan Mulyani, Karina Indah Muryani Muryani Nadhif Zulfa Agustina Nadira Aisha Susanto Nanda Puspita Nayasari Aissa Novani Karina Saputri Oktaviani, Hilma Pipit Ronalia Prasojo, Hadi Prima Agung Putricia Synthesa Rahma Firdaningtyas, Sakinah Rattekarua, Lucky Mutiara Pindan Rayinda Citra Utami Rayinda Citra Utami Rayinda Citra Utami, Rayinda Citra Reza A Budiman Rika Kumala Dewi Rini Astuti Riyana, Putri Rusmawati, Estiana Rustam Rustam Ryan Aldiansyah Akbar Sasmita H Hastuti Setiya, Banu Shofie Azzahrah Siagian , Theo Ojahan Pardamean Socia Prihawantoro Sudarno Sumarto Suhendra Sukma, Muhammad Sukoco Sukoco Tony Irawan Watekhi Watekhi Widyastuti, Nur Laila Wisynu Wardhana Yusman Syaukat Zetara Zetara