Not logged in.

Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Estimating Vertical Foreclosure in U.S. Gasoline Supply
Organization Unit
Authors
  • Zava Aydemir
  • Stefan Buehler
Language
  • English
Institution University of Zurich
Series Name Working paper series / Socioeconomic Institute
Number No. 212
Date 2002
Abstract Text We examine the competitive effects of the vertical integration of gasoline refineries and retailers in the U.S. Adapting the first-order condition approach of static oligopoly games to the analysis of vertically related oligopolies, we develop a novel framework for directly evaluating the strategic foreclosure effect and the effciency benefits associated with vertical integration. Applying this framework, we find significant evidence for both vertical foreclosure and effciency benefits. The foreclosure effect dominates the effciency benefits for more than half of the refining firms in the sample. Vertical foreclosure is found to increase the wholesale price of refined gasoline by 0.2 to 0.6 cents per gallon.
Official URL http://www.econ.uzh.ch/wp.html
PDF File Download from ZORA
Export BibTeX
EP3 XML (ZORA)