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Locational choice and price competition: some empirical results for the austrian retail gasoline market

  • Gerhard ClemenzEmail author
  • Klaus Gugler
Part of the Studies in Empirical Economics book series (STUDEMP)

Using data from the Austrian retail gasoline market we find that a higher station density reduces average prices. Market (i.e. ownership) concentration does not significantly affect average price, however is negatively related to the density of stations. Estimation of the pricing and entry equations as simultaneous equations does not alter our conclusions, and suggests causality running from station density to price. We argue that the spatial dimension of markets allows the identification of market conduct, which is particularly relevant for competition policy.

Keywords

Spatial competition Retail gasoline Pricing regressions 

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Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of ViennaViennaAustria

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