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Vertical market structure matters: The case of a horizontal retail merger in the German gasoline market

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  • Oschmann, Sebastian

Abstract

This article examines the price effects of gasoline stations following a retail merger in 2022. Using detailed station-level price data from 2020 to 2024, the analysis shows that fuel prices increase at both merging stations and their competitors, but with regional differences. These regional differences cannot be explained by horizontal merger effects. Instead, changes in the vertical market structure play a key role. The divestment of the station network disrupts supply chains, creating demand pressure on local refineries. The findings highlight the importance of vertical relationships in merger assessments.

Suggested Citation

  • Oschmann, Sebastian, 2025. "Vertical market structure matters: The case of a horizontal retail merger in the German gasoline market," DICE Discussion Papers 418, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    • Handle: RePEc:zbw:dicedp:314431
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    More about this item

    Keywords

    Gasoline Retail Markets; Ex-Post Merger Evaluation; Competition;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • 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

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