Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California: Comment

摘要

Hastings's analysis of the W-L data indicates that the ARCO-Thrifty acquisition increased prices at nearby competing stations by $0.05 per gallon, on average. Our analysis of the OPIS data provides a very different estimated price effect of this transaction, suggesting that if there was any price effect, it was an order of magnitude smaller. While we used a different dataset, we have found no reason that would explain this discrepancy.rnMerger retrospectives are very useful. They not only inform antitrust policy but also increase our understanding of consumer behavior and competitive forces. Hastings's research design provides an excellent example of the methodology to use and the type of event that needs to be studied. Unfortunately, demand for merger retrospectives continues to exceed supply.