Locational Choice and Price Competition: Some Empirical Results for the Austrian Retail Gasoline Market

Gerhard Clemenz, Klaus Gugler

Publication: Scientific journalJournal articlepeer-review


Using data from the Austrian retail gasoline market we find that a higher
station density reduces average prices. Market (i.e. ownership) concentration does
not significantly affect average price, however is negatively related to the density
of stations. Estimation of the pricing and entry equations as simultaneous equations
does not alter our conclusions, and suggests causality running from station density
to price.We argue that the spatial dimension of markets allows the identification of
market conduct, which is particularly relevant for competition policy.
Original languageEnglish
Pages (from-to)1 - 22
JournalEmpirical Economics
Publication statusPublished - 1 Aug 2006

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502013 Industrial economics

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