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The Impact Of Mergers In U.S. Petroleum Industry On Wholesale Gasoline Prices

Author

Listed:
  • JOHN A. KARIKARI
  • GODWIN AGBARA
  • HASHEM DEZHBAKHSH
  • BARBARA EL‐OSTA

Abstract

Starting in the mid‐1990s, the U.S. petroleum industry experienced a wave of mergers, several of them between large petroleum companies that were previously competitors. Using an econometric analysis of terminal city‐specific data, this study finds that the majority of the mergers led to higher wholesale gasoline prices in the United States in the mid‐1990s through 2000. (JEL L7, L13, L40)

Suggested Citation

  • John A. Karikari & Godwin Agbara & Hashem Dezhbakhsh & Barbara El‐Osta, 2007. "The Impact Of Mergers In U.S. Petroleum Industry On Wholesale Gasoline Prices," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 46-56, January.
    • Handle: RePEc:bla:coecpo:v:25:y:2007:i:1:p:46-56
    DOI: 10.1111/j.1465-7287.2006.00027.x
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    References listed on IDEAS

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    1. Scheffman, David T & Spiller, Pablo T, 1987. "Geographic Market Definition under the U.S. Department of Justice Merger Guidelines," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 123-147, April.
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    4. Severin Borenstein & Andrea Shepard, 2002. "Sticky Prices, Inventories, and Market Power in Wholesale Gasoline Markets," RAND Journal of Economics, The RAND Corporation, vol. 33(1), pages 116-139, Spring.
    5. Spiller, Pablo T & Huang, Cliff J, 1986. "On the Extent of the Market: Wholesale Gasoline in the Northeastern United States," Journal of Industrial Economics, Wiley Blackwell, vol. 35(2), pages 131-145, December.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Lance J. Bachmeier & James M. Griffin, 2003. "New Evidence on Asymmetric Gasoline Price Responses," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 772-776, August.
    8. Severin Borenstein & A. Colin Cameron & Richard Gilbert, 1997. "Do Gasoline Prices Respond Asymmetrically to Crude Oil Price Changes?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 305-339.
    9. Vita, Michael G, 2000. "Regulatory Restrictions on Vertical Integration and Control: The Competitive Impact of Gasoline Divorcement Policies," Journal of Regulatory Economics, Springer, vol. 18(3), pages 217-233, November.
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    Citations

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    Cited by:

    1. Kendix, Michael & Walls, W.D., 2010. "Oil industry consolidation and refined product prices: Evidence from US wholesale gasoline terminals," Energy Policy, Elsevier, vol. 38(7), pages 3498-3507, July.
    2. Robert Gmeiner, 2019. "Regulatory capture in the US petroleum refining industry," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(4), pages 459-498, December.
    3. Gregory Werden, 2008. "Assessing the Effects of Antitrust Enforcement in the United States," De Economist, Springer, vol. 156(4), pages 433-451, December.

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    More about this item

    JEL classification:

    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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