Is the Retail Gasoline Market Local or National?
|Type||Article in Periodical|
|Magazine / Source||Journal of Industry, Competition and Trade|
|MU Faculty or unit|
|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.|