CONTRACTUAL RELATION BETWEEN WHOLESALER AND RETAILER OF LIQUEFIED PETROLEUM GAS (LPG): A CASE STUDY OF THE JOÃO PESSOA/PB MARKET

Abstract

This work analyze the gas cooking distribution market in Joao Pessoa, more specifically, indicates a structure of the distribution market and analyzes the contract between a wholesaler and a retailer, showing the impacts for wholesalers, retailers and consumer, after recent changes in the resale format. For the analysis of the contract between a wholesaler and a retailer it was considered a model with two components: price and franchise (debt, in this case). The contractual relation between the greater wholesaler and the principal retailer of João Pessoa showed a conflict between the two parts: the wholesaler tries to capture the resale gains of the retailer through the renegotiation of the retailer’s debt and the retailer invests in other initiatives uncovering their real earnings.