New evidence on price discrimination and retail configuration

John Barron (barron@purdue.edu), Beck Taylor (btaylor@samford.edu) and John Umbeck

Applied Economics Letters, 2001, vol. 8, issue 2, 135-139

Abstract: In a frequently cited paper in the industrial organization literature, Shepard examines the extent to which gasoline stations can price discriminate by offering both selfand full-service gasoline rather than offering only a single service choice. Given the idiosyncratic nature of the data used in Shepard's original study and the recommendations of the author, this issue is re-examined using a larger and richer data set with a more typical smaller proportion of full-service-only stations. Using a panel of station-level data from the Los Angeles retail gasoline market from 1992'1995, Shepard's original findings are confirmed.

Date: 2001
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DOI: 10.1080/13504850150204219

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