The Greek competition authority has announced the completion of two new research studies that deeply map the pricing mechanisms in the extra virgin olive oil market, both at the production level and in the domestic retail market. These studies were conducted by Ioanna Christodoulaki and Athanasios Dimas from the Market Mapping and Research Department of the HCC, in collaboration with professors from the University of Ioannina and the Laboratory of Applications in Informatics and Computational Economics.

The first study, titled 'Price dependence among the major EU extra virgin olive oil markets,' examines the interdependence of producer prices among Greece, Italy, and Spain. The findings highlight Spain as the dominant price setter in the Mediterranean, with the Greek market acting as a 'follower,' adjusting long-term to Spanish trends. Italy appears as the main conduit for volatility transmission, reacting more intensely to short-term shocks.

The second study, 'Price Connectedness in the Extra Virgin Olive Oil Retail Market in Greece,' focuses on the Greek supermarket market. Through quantile regression analysis of final selling prices in four major chains, significant heterogeneity in pricing strategies was found. This heterogeneity appears at both the supermarket and product levels. The results do not indicate coordinated behavior, as price interactions vary significantly depending on whether prices are low or high, with asymmetric reactions observed among competitors.

These research studies are available on the website of the Greek competition authority. These actions are part of the broader strategy of the HCC to deepen the understanding of the food market structure, allowing for targeted interventions to protect competition and consumers.