Price Discrimination and Price Dispersion in the Argentine Gasoline Market
AbstractThis paper analyses the extent of gasoline price differences among provinces in Argentina during the period 1998-2000, and tries to impute those differences to price discrimination and non-price discrimination causes. It also tries to measure the effects of those differences on quantities and welfare. We conclude that price discrimination exists but it is relatively irrelevant to explain most geographic price differences. We also find that, in this case, eliminating price discrimination would lead to ambiguous changes in welfare, but moving to a uniform price scheme (i.e., preventing all geographic price differences) will almost certainly reduce total surplus.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 10 (2003)
Issue (Month): 2 ()
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Web page: http://www.tandfonline.com/CIJB20
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- William Comanor & Jon Riddle, 2003. "The Costs of Regulation: Branded Open Supply and Uniform Pricing of Gasoline," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 10(2), pages 135-155.
- Varian, Hal R, 1985. "Price Discrimination and Social Welfare," American Economic Review, American Economic Association, vol. 75(4), pages 870-75, September.
- Germán Coloma, 2002. "The Effect of the Repsol-YPF Merger on the Argentine Gasoline Market," Review of Industrial Organization, Springer, vol. 21(4), pages 399-418, December.
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