Price uniformity and competition in a retail gasoline market

Eckert, Andrew; West, Douglas S.

doi:10.1016/j.jebo.2003.09.006

Cited by 57 publications

(40 citation statements)

References 12 publications

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“…30 Similar to Eckert and West (2005), we focus on count and type of local competitors within a 2 km surrounding area. The local competition metric used for all estimations is linear distance.…”

Section: Impact Of Station Heterogeneitymentioning

confidence: 99%

Fuel Prices and Station Heterogeneity on Retail Gasoline Markets

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may August 2015Abstract Price levels and movements on gasoline and diesel markets are heavily debated among consumers, policy-makers, and competition authorities alike.In this paper, we empirically investigate how and why price levels differ across gasoline stations, using the first full year from a novel panel data set including price quotes from virtually all German stations. Our analysis specifically explores the role of station heterogeneity in explaining price differences across gasoline stations. Key determinants of price levels across fuel types are found to be ex-refinery prices as key input costs, a station's location on roads or highway service areas, and brand recognition. A lower number of stationspecific services implies lower fuel price levels, so does a more heterogeneous local competitive environment. JEL-Classification: L11, L71

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Section: Impact Of Station Heterogeneitymentioning

confidence: 99%

Fuel Prices and Station Heterogeneity on Retail Gasoline Markets

2017

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“…Eckert and West (2005) find that local market structure and station characteristics affect sellers' (uniform) price setting and suggest the presence of imperfect competition. Haucap et al (2017) document that prices are positively related to station service levels.…”

Section: Station Amenitiesmentioning

confidence: 93%

“…Turning to the effect of contractual forms and brand identity, Eckert and West (2005) show that major brand stations with supplier control are more likely to set the market mode price, suggesting that the presence of vertically integrated major brand stations might increase incentives to tacitly collude. Cooper and Jones (2007) document that interbrand competition is more intensive than intrabrand competition.…”

Section: Brand Identity and Contractual Formsmentioning

confidence: 99%

Measuring Market Power in Gasoline Retailing: A Market - or Station Phenomenon?

Nguyen-Ones

Steen

2018

SSRN Journal

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Applying detailed consecutive daily micro data at the gasoline station level from Sweden we estimate a structural model to uncover the degree of competition in the gasoline retail market.We find that retailers do exercise market power, but despite the high upstream concentration, the market power is very limited on the downstream level. The degree of market power varies with both the distance to the nearest station and the local density of gasoline stations. A higher level of service tends to raise a seller's market power; self-service stations have close to no market power. Contractual form and brand identity also seem to matter. We find a clear result: local station characteristics significantly affect the degree of market power. Our results indicate that local differences in station characteristics can more than offset the average market power found for the whole market.

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“…We believe that ZHVI is one of the best available proxies for land prices because of its spatial coverage (e.g., Zillow appraises about 75% of the houses in the U.S. several times a week and aggregates these house-level valuations into indexes at the ZIP code level). 16 To match the data with the model, we used the following 16 It is important to notice that a house need not to be sold to be included in ZHVI.…”

Section: Data For Land Pricesmentioning

confidence: 99%

Understanding gasoline price dispersion

Yilmazkuday

2016

Ann Reg Sci

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This paper models and estimates the gasoline price dispersion across time and space by using a unique data set at the gas-station level within the U.S.. Nationwide e¤ects (measured by time …xed e¤ects or crude oil prices) explain up to about 51% of the gasoline price dispersion across stations. Re…nery-speci…c costs, which have been ignored in the literature due to using local data sets within the U.S., contribute up to another 33% to the price dispersion. While state taxes explain about 12% of the price dispersion, spatial factors such as local agglomeration externalities, land prices, distribution costs of gasoline explain up to about 4%. The contribution of brand-speci…c factors is relatively minor.JEL Classi…cation: L11, L81, R32, R41,

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Price uniformity and competition in a retail gasoline market

Cited by 57 publications

References 12 publications

Fuel Prices and Station Heterogeneity on Retail Gasoline Markets

Fuel Prices and Station Heterogeneity on Retail Gasoline Markets

Measuring Market Power in Gasoline Retailing: A Market - or Station Phenomenon?

Understanding gasoline price dispersion

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