Measuring Market Power in Gasoline Retailing: A Market- or Station Phenomenon?
MetadataShow full item record
- Discussion papers (SAM) 
Applying detailed consecutive daily micro data at the gasoline station level from Sweden we estimate a structural model to uncover the degree of competition in the gasoline retail market. We find that retailers do exercise market power, but despite the high upstream concentration, the market power is very limited on the downstream level. The degree of market power varies with both the distance to the nearest station and the local density of gasoline stations. A higher level of service tends to raise a seller’s market power; self-service stations have close to no market power. Contractual form and brand identity also seem to matter. We find a clear result: local station characteristics significantly affect the degree of market power. Our results indicate that local differences in station characteristics can more than offset the average market power found for the whole market.
PublisherInstitutt for samfunnsøkonomi, NHH
Showing items related by title, author, creator and subject.
Paradigm Shift in International Gas Market Towards an Integrated Market? - Possible Impacts on Markets in East Asia and North West Europe Regina, Indhira (Masteroppgave/UIS-TN-IPT/2016;, Master thesis, 2016-06-14)Currently gas markets are largely regional and segmented as the result of transport complexities, differences in regional price formation and regulatory factors. Natural gas is more difficult to transport than oil and ...
Market power in the market for greenhouse gas emission permits : the interplay with the fossil fuel markets Hagem, Cathrine; Mæstad, Ottar (Working Paper, Working paper, 2002-12)Implementation of the Kyoto Protocol is likely to leave Russia and other Eastern European countries with market power in the market for emission permits. Ceteris paribus, this will raise the permit price above the competitive ...
Market power in the market for greenhouse gas emission permits - the interplay with the fossil fuel markets Hagem, Cathrine; Mæstad, Ottar (CICERO Working Paper;2002:08, Working paper, 2002)Implementation of the Kyoto Protocol is likely to leave Russa and other Eastern European countries with market power in the market for emission permits. Ceteris paribus, this will raise the permit price above the competitive ...