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American Economic Review: Vol. 102 No. 5 (August 2012)
AER Volume. 102, Issue 5 | 
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Spatial Differentiation and Vertical Mergers in Retail Markets for Gasoline
Article Citation
Houde, Jean-François. 2012. "Spatial Differentiation and Vertical Mergers in Retail Markets for Gasoline."
American Economic Review,
102(5): 2147-82.
DOI: 10.1257/aer.102.5.2147
DOI: 10.1257/aer.102.5.2147
Abstract
This paper studies an empirical model of spatial competition applied to gasoline markets. The main feature is to specify commuting paths as the "locations" of consumers in a Hotelling-style model. As a result, spatial differentiation depends in an intuitive way on the structure of the road network and the direction of traffic flows. The model is estimated using panel data on the Quebec City gasoline market and used to evaluate the consequences of a recent vertical merger. Difference-in-difference and counterfactual simulation methods are
compared, and the results, to a large extent, validate the assumptions of the demand model. (JEL G34, L13, L42, L81, Q41, R41)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (3.33 GB) | Online Appendix (323.55 KB)
Authors
Houde, Jean-François (U PA)
JEL Classifications
G34: Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
L13: Oligopoly and Other Imperfect Markets
L42: Vertical Restraints; Resale Price Maintenance; Quantity Discounts
L81: Retail and Wholesale Trade; e-Commerce
Q41: Energy: Demand and Supply
R41: Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
L13: Oligopoly and Other Imperfect Markets
L42: Vertical Restraints; Resale Price Maintenance; Quantity Discounts
L81: Retail and Wholesale Trade; e-Commerce
Q41: Energy: Demand and Supply
R41: Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
