The effect of entry restrictions on price: evidence from the retail gasoline market

I exploit a change in Spanish regulations to test the effect of the relaxation of entry restrictions on the equilibrium retail price of diesel. In February 2013, a Central Government reform permitted gasoline stations to operate in industrial and commercial areas. Over the following 2-year period, t...

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Detalles Bibliográficos
Autor: Bernardo, Valeria
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2018
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:2445/149519
Acceso en línea:https://hdl.handle.net/2445/149519
Access Level:acceso abierto
Palabra clave:Control de preus
Política governamental
Gasolina
Price control
Government policy
Gasoline
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repository_id_str
spelling The effect of entry restrictions on price: evidence from the retail gasoline marketBernardo, ValeriaControl de preusPolítica governamentalGasolinaPrice controlGovernment policyGasolineI exploit a change in Spanish regulations to test the effect of the relaxation of entry restrictions on the equilibrium retail price of diesel. In February 2013, a Central Government reform permitted gasoline stations to operate in industrial and commercial areas. Over the following 2-year period, this deregulation led to a high number of new market entrants in these newly designated free entry areas. By isolating markets exposed to entry and markets unaffected by new entrants, and adopting a difference-in-difference approach, results show that gasoline stations exposed to a new market entrant within a one-mile radius lower their prices by an average 1.04%. This result is significant, representing almost one fifth of the average retail margin. Additionally, the results show that the reduction in the equilibrium price is caused by the first market entrant and that the effect decreases over time.Springer Verlag2020202020182020info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersion25 p.application/pdfhttps://hdl.handle.net/2445/149519Articles publicats en revistes (Econometria, Estadística i Economia Aplicada)reponame:Recercat. Dipósit de la Recerca de Catalunyainstname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)InglésVersió postprint del document publicat a: https://doi.org/10.1007/s11149-017-9349-3Journal of Regulatory Economics, 2018, vol. 53, num. 1, p. 75-99https://doi.org/10.1007/s11149-017-9349-3(c) Springer Verlag, 2018info:eu-repo/semantics/openAccessoai:recercat.cat:2445/1495192026-05-29T05:05:01Z
dc.title.none.fl_str_mv The effect of entry restrictions on price: evidence from the retail gasoline market
title The effect of entry restrictions on price: evidence from the retail gasoline market
spellingShingle The effect of entry restrictions on price: evidence from the retail gasoline market
Bernardo, Valeria
Control de preus
Política governamental
Gasolina
Price control
Government policy
Gasoline
title_short The effect of entry restrictions on price: evidence from the retail gasoline market
title_full The effect of entry restrictions on price: evidence from the retail gasoline market
title_fullStr The effect of entry restrictions on price: evidence from the retail gasoline market
title_full_unstemmed The effect of entry restrictions on price: evidence from the retail gasoline market
title_sort The effect of entry restrictions on price: evidence from the retail gasoline market
dc.creator.none.fl_str_mv Bernardo, Valeria
author Bernardo, Valeria
author_facet Bernardo, Valeria
author_role author
dc.subject.none.fl_str_mv Control de preus
Política governamental
Gasolina
Price control
Government policy
Gasoline
topic Control de preus
Política governamental
Gasolina
Price control
Government policy
Gasoline
description I exploit a change in Spanish regulations to test the effect of the relaxation of entry restrictions on the equilibrium retail price of diesel. In February 2013, a Central Government reform permitted gasoline stations to operate in industrial and commercial areas. Over the following 2-year period, this deregulation led to a high number of new market entrants in these newly designated free entry areas. By isolating markets exposed to entry and markets unaffected by new entrants, and adopting a difference-in-difference approach, results show that gasoline stations exposed to a new market entrant within a one-mile radius lower their prices by an average 1.04%. This result is significant, representing almost one fifth of the average retail margin. Additionally, the results show that the reduction in the equilibrium price is caused by the first market entrant and that the effect decreases over time.
publishDate 2018
dc.date.none.fl_str_mv 2018
2020
2020
2020
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/149519
url https://hdl.handle.net/2445/149519
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://doi.org/10.1007/s11149-017-9349-3
Journal of Regulatory Economics, 2018, vol. 53, num. 1, p. 75-99
https://doi.org/10.1007/s11149-017-9349-3
dc.rights.none.fl_str_mv (c) Springer Verlag, 2018
info:eu-repo/semantics/openAccess
rights_invalid_str_mv (c) Springer Verlag, 2018
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 25 p.
application/pdf
dc.publisher.none.fl_str_mv Springer Verlag
publisher.none.fl_str_mv Springer Verlag
dc.source.none.fl_str_mv Articles publicats en revistes (Econometria, Estadística i Economia Aplicada)
reponame:Recercat. Dipósit de la Recerca de Catalunya
instname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
instname_str Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
reponame_str Recercat. Dipósit de la Recerca de Catalunya
collection Recercat. Dipósit de la Recerca de Catalunya
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,228081

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