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American Economic Review: Vol. 100 No. 3 (June 2010)

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Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California: Reply

Article Citation

Hastings, Justine. 2010. "Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California: Reply." American Economic Review, 100(3): 1277-79.

DOI: 10.1257/aer.100.3.1277

Abstract

In their comment, Taylor, Kreisle and Zimmerman use gasoline price data taken from fleet card transactions at selected gasoline stations to re-examine a subset of results presented in Hastings (2004). Bringing new data to re-examine the question is a helpful contribution. Both data sets have limitations, potentially causing differences in the estimated effect. I worked with the authors to explore and understand the differences in the data sets and how they impact the estimates in both analyses, and conclude that the effects sizes are likely smaller in areas of overlap between the two data sets.

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Authors

Hastings, Justine (Yale U)

JEL Classifications

L13: Oligopoly and Other Imperfect Markets
L22: Firm Organization and Market Structure
L42: Vertical Restraints; Resale Price Maintenance; Quantity Discounts
L71: Mining, Extraction, and Refining: Hydrocarbon Fuels
L81: Retail and Wholesale Trade; e-Commerce


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