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New evidence on price discrimination and retail configuration

Author

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  • John Barron
  • Beck Taylor
  • John Umbeck

Abstract

In a frequently cited paper in the industrial organization literature, Shepard examines the extent to which gasoline stations can price discriminate by offering both selfand full-service gasoline rather than offering only a single service choice. Given the idiosyncratic nature of the data used in Shepard's original study and the recommendations of the author, this issue is re-examined using a larger and richer data set with a more typical smaller proportion of full-service-only stations. Using a panel of station-level data from the Los Angeles retail gasoline market from 1992'1995, Shepard's original findings are confirmed.

Suggested Citation

  • John Barron & Beck Taylor & John Umbeck, 2001. "New evidence on price discrimination and retail configuration," Applied Economics Letters, Taylor & Francis Journals, vol. 8(2), pages 135-139.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:2:p:135-139
    DOI: 10.1080/13504850150204219
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    Cited by:

    1. Alessandro Bonanno & Rigoberto A. Lopez, 2007. "Competition Effects of Supermarket Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 555-568.
    2. Bello, Alejandro & Contín-Pilart, Ignacio, 2012. "Taxes, cost and demand shifters as determinants in the regional gasoline price formation process: Evidence from Spain," Energy Policy, Elsevier, vol. 48(C), pages 439-448.
    3. Thomas E. Cooper & John T. Jones, 2007. "Asymmetric Competition on Commuter Routes: The Case of Gasoline Pricing," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 483-504, October.
    4. Christopher Taylor & Jeffrey Fischer, 2003. "A Review of West Coast Gasoline Pricing and the Impact of Regulations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 10(2), pages 225-243.
    5. Kumar, Pradeep, 2018. "Market power and cost efficiencies in banking," International Journal of Industrial Organization, Elsevier, vol. 57(C), pages 175-223.

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