Spatial competition between gas stations: how market structure relates to diesel prices [Hebrew]

Abstract

Following the study of retail gasoline, this paper presents a complementary analysis of the retail diesel market. In the absence of price controls on diesel, I find greater price variation across firms and locations, and significantly lower prices in contested markets. Importantly, and unlike in gasoline, the presence of a competitor seems to lower retail prices even among the four large firms.

Publication
Israel Competition Authority

Media coverage:

Globes, Nov 2017; Globes, Dec 2017; TheMarker, Dec 2017.

Roma Poberejsky
Roma Poberejsky
PhD Economist