The Choice of Organizational Form in Gasoline Retailing and the Costs of Laws Limiting that Choice
29 Pages Posted: 19 Mar 2000 Last revised: 27 Oct 2022
Date Written: December 1999
Abstract
This paper uses a new data source to analyze the choice of organizational form of retail gasoline stations. In recent years, gasoline stations have tended to be less likely to be owned and operated by a lessee dealer and more likely to be owned and operated by the refiner. Critics have alleged that company-operated stations are used to drive lessee dealer stations out of business in order to restrict competition. We examine the determinants of organizational form and find them to be based on efficiency not predatory concerns. We estimate the costs of recent laws prohibiting company ownership of gasoline stations.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Dynamic Pricing in Retail Gasoline Markets
By Severin Borenstein and Andrea Shepard
-
Sticky Prices, Inventories, and Market Power in Wholesale Gasoline Markets
By Severin Borenstein and Andrea Shepard