Ruhr Economic Papers

Ruhr Economic Papers #522

Is the German Retail Gas Market Competitive? A Spatial-temporal Analysis Using Quantile Regression

by Alexander Kihm, Nolan Ritter and Colin Vance

RWI, 12/2014, 27 S./p., 8 Euro, ISBN 978-3-86788-597-3 DOI: 10.4419/86788597

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Abstract

We explore whether non-competitive pricing prevails in Germany’s retail gasoline market by examining the influence of the crude oil price on the retail gasoline price, focusing specifically on how this influence varies according to the brand and to the degree of competition in the vicinity of the station. Our analysis identifies several factors other than cost – including the absence of nearby competitors and regional market concentration – that play a significant role in mediating the influence of the oil price on the retail gas price, suggesting price setting power among stations.

JEL-Classification: C33, Q41, R41

Keywords: Panel data; quantile regression; spatial competition; gasoline market

Published as:

Kihm, A., N. Ritter and C. Vance (2016), Is the German Retail Gas Market Competitive? A Spatial-temporal Analysis Using Quantile Regression. Land Economics 92 (4): 718-736.

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