Market Structure and Price-Cost Margins in European Retail Gasoline Industry
Market Structure and Price-Cost Margins in European Retail Gasoline Industry

Summary/Abstract: Purpose: The purpose of this study was to investigate the influence of market structure and marketconduct characteristics (such as market concentration, presence of networks operated by globalcorporations, presence of vertically integrated companies, presence of hypermarket gasoline stationsand consumption level) on price-cost margin levels, based on an example of the European Unionretail gasoline market. Methodology: The research applied regression analysis on a panel data set comprising of averagemonthly price-cost margins for 2012 to 2015, based on the data published in the European Commission Oil Bulletin, and on a set of variables characterizing market structure and market conductof 24 European Union member state countries. Findings: The results showed that in the case of retail gasoline markets, higher industrial concentration yields higher price-cost margins with a statistically signifcant influence of other marketstructure and conduct factors,

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