Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California: Comment
Christopher T. Taylor
Nicholas M. Kreisle
Paul R. Zimmerman
American Economic Review
no. 3, June 2010
In a paper in the March 2004 AER, Justine Hastings concludes that the acquisition of an independent gasoline retailer, Thrifty, by a vertically integrated firm, ARCO, is associated with sizable price increases at competing stations. To better understand the mechanism to which she attributes this effect -- which combines vertical integration and rebranding -- we attempted but ultimately failed to reproduce the results using alternative data.
Taylor, Christopher T., Nicholas M. Kreisle, and Paul R. Zimmerman.
"Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California: Comment."
American Economic Review,
Oligopoly and Other Imperfect Markets
Firm Organization and Market Structure
Vertical Restraints; Resale Price Maintenance; Quantity Discounts
Mining, Extraction, and Refining: Hydrocarbon Fuels
Retail and Wholesale Trade; e-Commerce