Quotation Weiss, Christoph, Pennerstorfer, Dieter. 2013. Spatial Clustering and Market Power: Evidence from the Retail Gasoline Market. Regional Science and Urban Economics (43): 661-675.


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Abstract

We investigate the impact of local market power and spatial clustering on prices in the retail gasoline market. The acquisition of Aral stations from BP in the Austrian gasoline market in 2003 provides a quasi-experiment for identification of the causal effects of changes in spatial clustering on retail prices for a panel of gasoline stations. Our econometric analysis suggests that spatial clustering of gasoline stations reduces the degree of competition between firms and increases equilibrium prices. Merger simulations show that ignoring merger-induced changes in spatial characteristics will lead to a significant bias in the evaluation of merger effects.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Regional Science and Urban Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C, WH-B
Language English
Title Spatial Clustering and Market Power: Evidence from the Retail Gasoline Market
Number 43
Year 2013
Page from 661
Page to 675
URL http://dx.doi.org/10.1016/j.regsciurbeco.2013.04.002

Associations

Projects
Price Dispersion in Space: Evidence from Micro-Data on the Austrian Gasoline Market
People
Weiss, Christoph (Details)
Pennerstorfer, Dieter (Former researcher)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
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