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Rationalization of Retail Gasoline Station Networks in Canada

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  • Andrew Eckert
  • Douglas West

Abstract

In Canada, as well as in the U.S., the rationalization of retail gasoline networks has been occurring since 1970. Rationalization may be the outcome of a competitive process or a tacitly collusive one. This paper provides a description of how rationalization has played out in retail gasoline markets in Canada, and particularly in the Toronto area, from 1991 to 2002. We also consider whether aggregate Canadian data on gasoline retailing, as well as data from the Toronto area, provide any support for any of the rationalization explanations. Copyright Springer 2004

Suggested Citation

  • Andrew Eckert & Douglas West, 2004. "Rationalization of Retail Gasoline Station Networks in Canada," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 26(1), pages 1-25, October.
    • Handle: RePEc:kap:revind:v:26:y:2004:i:1:p:1-25
    DOI: 10.1007/s11151-004-4083-2
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    References listed on IDEAS

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    1. Noel, Michael, 2004. "Edgeworth Price Cycles, Cost-based Pricing and Sticky Pricing in Retail Gasoline Markets," University of California at San Diego, Economics Working Paper Series qt3pp315q7, Department of Economics, UC San Diego.
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    Cited by:

    1. Benjamin Atkinson, Andrew Eckert, and Douglas S. West, 2014. "Daily Price Cycles and Constant Margins: Recent Events in Canadian Gasoline Retailing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    2. Harry Bloch & Nick Wills-Johnson, 2011. "Appraising the ACCC's Caltex-Mobil Decision: An Alternative Measure of Competition Based on Networks," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 18(3), pages 5-20.
    3. Andrew Eckert & Douglas West, 2006. "Exit and Upgrading in Response to Entry: The Case of Gasoline Retailing," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(3), pages 351-372.
    4. Nikolic, Adriana & Weiss, Christoph, 2014. "Spatial interactions in location decisions: Empirical evidence from a Bayesian spatial probit model," Department of Economics Working Paper Series 177, WU Vienna University of Economics and Business.
    5. Andrew Eckert & Heather Eckert, 2014. "Regional Patterns in Gasoline Station Rationalization in Canada," Journal of Industry, Competition and Trade, Springer, vol. 14(1), pages 99-122, March.
    6. Yun Jeong Choi & Jee Young Kim & Min Hee You, 2017. "Radius Restriction and Firms' Survival: Evidence from the Coffee Franchise Industry," Working papers 2017rwp-115, Yonsei University, Yonsei Economics Research Institute.

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