Title: A new price test in geographic market definition: an application to German retail gasoline market
Authors: Bantle, Melissa
Muijs, Matthias
Language: eng
Issue Date: 2018
Editors: Dewenter, Ralf 
Publisher: Helmut-Schmidt-Universität / Universität der Bundeswehr Hamburg, Department of Economics
Document Type: Working Paper
Journal / Series / Working Paper (HSU): Diskussionspapier / Helmut-Schmidt-Universität / Fächergruppe Volkswirtschaftslehre 
Volume: 2018
Issue: 180 (August)
Publisher Place: Hamburg
Market delineation is a fundamental tool in modern antitrust analysis. However, the definition of relevant markets can be very difficult in practice. This preliminary draft applies a new methodology combining a simple price correlation test with hierarchical clustering -a method known from machine learning- in order to analyze the competitive situation in the German retail gasoline market. Our analysis reveals two remarkable results: At first, there is a uniform pattern across stations of the same brand regarding their maximum daily prices which confirms the claim that prices are partly set centrally. But more importantly, price reactions are also influenced by regional or local market conditions as the price setting of gasoline stations is strongly affected by commuter routes.
Organization Units (connected with the publication): VWL, insb. Industrieökonomik 
URL: http://hdl.handle.net/10419/184877
Appears in Collections:3 - Reported Publications

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