Prissättning på den Svenska Taximarknaden
This thesis uses ten years of data to examine the underlying drivers behind changes in the taxi price, specifically we look at the relationship between the taxi price and changes in the underlying costs. We use a two-step error correction framework to investigate how changes in costs affect prices in the long run as well as in the short run. We also study if the price adjustment process is asymmetric. Furthermore, we examine if price discrimination exists on the taxi market in Stockholm. We find that in the long run the pass-through effect is almost complete, whereas in the short run prices are considerably less sensitive to cost changes. There is no significant asymmetry in the adjustment process. Finally, price discrimination of the third degree is not found to exist, but other types of price discrimination do exist to some extent.