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The Choice of Organizational Form in Gasoline Retailing and the Cost of Laws That Limit That Choice

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Author Info
Blass, Asher A
Carlton, Dennis W

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Abstract

This paper uses a new data source to analyze the choice of organizational form of retail gasoline stations. In recent years, gasoline stations have tended to be less likely to be owned and operated by a lessee-dealer and more likely to be owned and operated by the refiner. We examine the determinants of organizational form and find them to be based on efficiency, not predatory concerns. We estimate the costs of recent laws that prohibit company ownership of gasoline stations and find that the annual cost of national divorcement legislation could easily exceed $1 billion. Copyright 2001 by the University of Chicago.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Law & Economics.

Volume (Year): 44 (2001)
Issue (Month): 2 (October)
Pages: 511-24
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Handle: RePEc:ucp:jlawec:v:44:y:2001:i:2:p:511-24

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  1. 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 and Francis Journals, vol. 10(2), pages 135-155, July. [Downloadable!] (restricted)
  2. Michiel Bijlsma & Viktoria Kocsis & Victoria Shestalova & Gijsbert Zwart, 2008. "Vertical foreclosure, a policy framework," CPB Documents 157, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Muehlegger, Erich, 2006. "Gasoline Price Spikes and Regional Gasoline Content Regulation: A Structural Approach," Working Paper Series rwp06-015, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  4. Erich J. Muehlegger, 2004. "Gasoline Price Spikes and Regional Gasoline Content Regulations - A Structural Approach," Working Papers 0421, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
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