Is the Retail Gasoline Market Local or National?


KVASNIČKA Michal STANĚK Rostislav KRČÁL Ondřej

Year of publication 2018
Type Article in Periodical
Magazine / Source Journal of Industry, Competition and Trade
MU Faculty or unit

Faculty of Economics and Administration

Keywords Geographical relevant market; Retail gasoline market; Station density; Prices
Description This paper studies the effect of station density on prices in the retail gasoline market in the Czech Republic. We estimate the impact of the number of competing stations in various driving-distance ranges around each station on prices. We find that station density has a negative effect on prices; the effect decreases with distance and is statistically significant up to six kilometers. This suggests that the retail gasoline market is local rather than national.
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