Does Concentration Matter? Measurement of Petroleum Merger Price Effects
- (pp. 45-50)
AbstractWe have estimated the price effects of two changes in market structure resulting from two changes in the ownership of gasoline refineries in the San Francisco Bay area: Tosco's purchase of Unocal's Rodeo refinery in April 1997 and UDS's purchase of Tosco's Avon refinery in August 2000. These events provide a relatively unique opportunity to test a price concentration relationship. If market concentration is related to price, then we should observe prices increase and then decrease by a similar amount following these transactions. We do not find evidence of a consistent price concentration relationship.
CitationHosken, Daniel, Louis Silvia, and Christopher Taylor. 2011. "Does Concentration Matter? Measurement of Petroleum Merger Price Effects." American Economic Review, 101 (3): 45-50. DOI: 10.1257/aer.101.3.45
- G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 Oligopoly and Other Imperfect Markets