The ACCC’S Caltex-Mobil Decision: A Network View

22 Pages Posted: 1 Mar 2010

See all articles by Harry Bloch

Harry Bloch

Curtin University of Technology - Curtin Business School - School of Economics and Finance

Nick Wills-Johnson

DBP

Date Written: February 24, 2010

Abstract

On December 2nd 2009, the Australian Competition and Consumer Commission (ACCC) announced its intention to oppose the acquisition of Mobil’s retail assets by Caltex, based in part on an assessment of adverse competition effects in some local markets. Their assessment was based upon the proportion of sites within each local market that would become controlled by Caltex post-merger. This paper suggests an alternative method for analysing competitive effects, which formalises local market structure into a network and assesses the position of each outlet in that network.

Keywords: Retail petroleum, networks

JEL Classification: L13, L81

Suggested Citation

Bloch, Harry and Wills-Johnson, Nick, The ACCC’S Caltex-Mobil Decision: A Network View (February 24, 2010). Available at SSRN: https://ssrn.com/abstract=1558767 or http://dx.doi.org/10.2139/ssrn.1558767

Harry Bloch

Curtin University of Technology - Curtin Business School - School of Economics and Finance ( email )

Curtin University
GPO Box U 1987
Perth, 6845
Australia
+61 8 9266 2035 (Phone)
+61 8 9266 3026 (Fax)

Nick Wills-Johnson (Contact Author)

DBP ( email )

PO Box Z5267
St Georges Terrace
Perth, 6831
Australia

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