gasoline_lecture2_fall2011

gasoline_lecture2_fall2011 - Retail Gasoline Pricing...

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Retail Gasoline Pricing
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Source: Lewis (2006)
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Longer Run View of Rockets & Feathers Elements of Gasoline Costs 0 50 100 150 200 250 300 1 9 99 2000 2 0 01 2002 03 2004 05 Year Cents/Gallon Crude Oil LA Spot Gasoline Taxes Retail Costs and Margin
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“Vertical Relationships and Competition in Retail Gasoline Markets” Justine Hastings, AER, 2003 Why types of stations make retail gasoline markets more competitive? Types of Relationships b/t Refiners and Retail Stations 1) Company operated (co-op) by refiner Refiner sets price 2) Lessee-dealer Lessee sets price but contracted to buy from refiner at a specific wholesale price 3) Dealer-owned 4) Independent Does not necessarily sell branded gas Do certain relationships make the market more competitive?
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• See Class Notes on Vertical Integration and “Double Monopolization”
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Any Existing Evidence? • Simple correlation:
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This note was uploaded on 02/20/2012 for the course ECON 489 taught by Professor Nelson during the Fall '08 term at Texas A&M.

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gasoline_lecture2_fall2011 - Retail Gasoline Pricing...

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