IDEAS home Printed from https://ideas.repec.org/p/txa/wpaper/0503.html
   My bibliography  Save this paper

Price Effects From Retail Gasoline Mergers

Author

Listed:
  • Michael R. Ward

    (Department of Economics, University of Texas at Arlington)

  • Nicholas K. Oxedine

Abstract

This paper explores the price effects of a series of oil mergers, acquisitions, and joint ventures in the decade since 1990 by estimating the price effects of the resulting increases in market concentration. Estimates from two samples, one city level and one state level, of monthly retail and wholesale gasoline prices were conducted. Market power measures were based on the number of branded retail outlets and a calculated Herfindahl-Hirshmann Index (HHI) for each in each geographic market. The mergers are found to have increased retail prices by 0.6% to 1.2% resulting in a transfer from producers to consumers of $1.2 to $2.4 billion per year but a deadweight loss of less than $15 million per year.

Suggested Citation

  • Michael R. Ward & Nicholas K. Oxedine, 2005. "Price Effects From Retail Gasoline Mergers," Working Papers 0503, University of Texas at Arlington, Department of Economics.
    • Handle: RePEc:txa:wpaper:0503
    as

    Download full text from publisher

    File URL: http://www.uta.edu/faculty/mikeward/gasmergers.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Gasoline; Merger; Pricing; Structure-Conduct-Performance;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:txa:wpaper:0503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shushanik Papanyan (email available below). General contact details of provider: https://edirc.repec.org/data/deutaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.