|
|
|
|
||||
|
||||
Should I Buy Here, or Keep Driving? The Effect of Geographic Market Density on Retail Gas PricesAmy SchultheisBankrate Insurance Daniel K. N. JohnsonColorado College - Department of Economics and Business Kristina M. LybeckerColorado College - Department of Economics & Business Devin NadarColorado College - Department of Economics and Business December 10, 2011 Colorado College Working Paper No. 2011-15 Abstract: The effect of spatial factors on competition and the price of gasoline have been sparsely explored by previous studies. Existing work examines how gasoline prices differ based on distance from the distribution site as well as how cost factors influence gasoline prices. Using market data from six midsized U.S. metro areas with similar isolation from neighboring retail markets, this paper examines the effects of location on retail price, while controlling for brand effects. Spatial regression analysis accommodates the potential of spatially correlated errors, and sensitivity analysis tests for several measures of retail location concentration. Results point to reproducible brand premiums and some location-based price differences, but also show the counterintuitive finding that areas with more market competition do not show significantly lower retail gas prices.
Number of Pages in PDF File: 17 Keywords: gas, geography, spatial, concentration, competition JEL Classification: N7, R32 working papers seriesDate posted: December 11, 2011 ; Last revised: March 12, 2012Suggested CitationContact Information
|
|
||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo1 in 0.375 seconds
