Market Power in the Argentine Liquid Fuels Wholesale Chain

María Culós, M. Florencia Gabrielli and Marcos Herrera Gómez
Additional contact information
M. Florencia Gabrielli: Universidad Nacional de Cuyo/CONICET
Marcos Herrera Gómez: IELDE-UNSa/CONICET
Authors registered in the RePEc Author Service: Marcos Herrera Gómez

No 157, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: The liquid fuels market in Argentina is characterized by a high level of concentration, especially in local geographic areas. This paper studies the demand of the liquidfuels wholesale chain in Argentina, using the discrete choice approach, based on the premise that different firms offer differentiated goods, by virtue of the intrinsic characteristics of the good, and that such differentiation gives them the power to set prices above marginal production costs. The difference between prices and marginal costs determines the firm’s market power. Using a novel dataset, we provide new empirical evidence that quantifies market power across firms and regions.

Keywords: Liquid Fuels; Market Power; Product Differentiation. (search for similar items in EconPapers)
JEL-codes: C52 L13 L71 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2022-07
New Economics Papers: this item is included in nep-com, nep-ind and nep-reg
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https://rednie.eco.unc.edu.ar/files/DT/157.pdf (application/pdf)

Related works:
Working Paper: Market power in the Argentine liquid fuels wholesale chain (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:aoz:wpaper:157

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