CEU Electronic Theses and Dissertations, 2009
| Author | Toth, Andras Istvan |
|---|---|
| Title | Pricing gasoline on a highway: a natural experiment |
| Summary | In my thesis I examine the pricing behavior of petrol stations on the M7 highway, taken into account the spatial characteristics of the market. After using simple statistical tools to describe the market, I introduce an extended version of the Hotelling model, in which it is possible to analyze the effect of an exogenous market size increase. This market size increase i.e. the finishing of a viaduct can be handled as a natural experiment. Based on the extended version I calibrate a model which describes the behavior of nearby gasoline stations. I find, that the effect of the market size increase depends on the procurement cost of the stations, although in the analyzed cases it increases the margin charged by them. |
| Supervisor | Kezdi, Gabor |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2009/toth_andras.pdf |
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