Selling gasoline as a by-product: The impact of market structure on local prices

Justus Haucap, Ulrich Heimeshoff and Manuel Siekmann

No 240, DICE Discussion Papers from Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: We use a novel data set with exact price quotes from virtually all German gasoline stations to empirically investigate how a temporary variance in local market structure - induced by restricted opening hours of specific players - affects price competition. We focus on stations selling gasoline as a by-product and find that, during their exogenously determined hours of opening, they have a significant negative price effect on nearby major-brand competitors. Applying a difference-in-difference framework with hourly average prices, our findings explicitly account for counterfactual market scenarios.

Keywords: Gasoline Markets; Intraday Pricing; Supermarkets; Difference-in-Difference (search for similar items in EconPapers)
JEL-codes: L11 L71 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-com, nep-ene, nep-ind, nep-mkt and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Working Paper: Selling Gasoline as a By-Product: The Impact of Market Structure on Local Prices (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:dicedp:240

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