Is the German Retail Gas Market Competitive?
29 Pages Posted: 13 Jun 2015
Date Written: December 17, 2014
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.
Keywords: Panel data; quantile regression; spatial competition; gasoline market
JEL Classification: C33, Q41, R41
Suggested Citation: Suggested Citation