Market Power, Efficiency, and Upstream Effects: Disentangling Multiple Merger Effects on Retail Gasoline Price
Date:
Conference HP
日時/Date and Time
- 2025年9月13日(土) 14:45-15:15
要旨/Abstract
This study examines the market power and efficiency effects of a merger on retail prices in an industry characterized by vertical relationships. As a case study, we analyze the large-scale merger between vertically integrated petroleum firms in Japan. Leveraging geographical variation across local markets, we employ a difference-in-differences approach. The results suggest that the market power effect increased retail gasoline prices, while the efficiency effect did not lead to a significant price reduction. Moreover, the market power effect was more pronounced in markets with independent retailers, where the merging firm had both the incentive and the ability to adopt a raising rivals’ costs strategy. These findings suggest that vertical industry structures can exacerbate anti-competitive effects in downstream markets.
セッション/Session
- 産業組織論（第2会場）
言語/Language
- 日本語/Japanese