Is the German Retail Gasoline Market Competitive? A Spatial-Temporal Analysis Using Quantile Regression
We explore whether noncompetitive 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 statistically significant role in mediating the influence of the oil price on the retail gas price, suggesting moderate price-setting power among stations.
Kihm, A., N. Ritter and C. Vance Ph.D. (2016), Is the German Retail Gasoline Market Competitive? A Spatial-Temporal Analysis Using Quantile Regression. Land Economics, 92, 4, 718-736
DOI: 10.3368/le.92.4.718