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| Joshua Karl Austin |
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| ''Vertical integration and pricing outcomes in retail gasoline markets'' |
| ( 2015, Vol. 35 No.4 ) |
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| The real world impact of vertical integration on prices for consumers remains a controversial topic. Economic theory suggests that there are multiple effects of vertical integration on prices which work in opposite directions. This paper employs high frequency panel data from a regional U.S. market to determine which effects are dominant at retail gasoline stations. Using two different techniques, I find that vertically-integrated company-operated gasoline stations charge prices five to eleven cents lower than non-integrated, lessee-operated gasoline stations. |
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| Keywords: vertical integration, retail gasoline, divorcement, fixed-effects, economics |
JEL: L2 - Firm Objectives, Organization, and Behavior: General
L8 - Industry Studies: Services: General |
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| Manuscript Received : Jul 17 2015 | | Manuscript Accepted : Oct 02 2015 |
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