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Is the Retail Gasoline Market Local or National?

Author

Listed:
  • Michal Kvasnička

    (Masaryk University)

  • Rostislav Staněk

    (Masaryk University)

  • Ondřej Krčál

    (Masaryk University)

Abstract

This paper studies the effect of station density on prices in the retail gasoline market in the Czech Republic. We estimate the impact of the number of competing stations in various driving-distance ranges around each station on prices. We find that station density has a negative effect on prices; the effect decreases with distance and is statistically significant up to six kilometers. This suggests that the retail gasoline market is local rather than national.

Suggested Citation

  • Michal Kvasnička & Rostislav Staněk & Ondřej Krčál, 2018. "Is the Retail Gasoline Market Local or National?," Journal of Industry, Competition and Trade, Springer, vol. 18(1), pages 47-58, March.
    • Handle: RePEc:kap:jincot:v:18:y:2018:i:1:d:10.1007_s10842-017-0249-0
    DOI: 10.1007/s10842-017-0249-0
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    References listed on IDEAS

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    Cited by:

    1. Korff, Alex, 2021. "Competition on the fast lane: The price structure of homogeneous retail gasoline stations," DICE Discussion Papers 359, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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    More about this item

    Keywords

    Geographical relevant market; Retail gasoline market; Station density; Prices;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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