Vertical integration and pricing outcomes in retail gasoline markets

Joshua Austin ()
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Joshua Austin: Ohio University

Economics Bulletin, 2015, vol. 35, issue 4, 2060-2063

Abstract: The real world impact of vertical integration on prices for consumers remains a controversial topic. Economic theory suggests that there are multiple effects of vertical integration on prices which work in opposite directions. This paper employs high frequency panel data from a regional U.S. market to determine which effects are dominant at retail gasoline stations. Using two different techniques, I find that vertically-integrated company-operated gasoline stations charge prices five to eleven cents lower than non-integrated, lessee-operated gasoline stations.

Keywords: vertical integration; retail gasoline; divorcement; fixed-effects; economics (search for similar items in EconPapers)
JEL-codes: L2 L8 (search for similar items in EconPapers)
Date: 2015-10-02
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Citations: View citations in EconPapers (1)

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