STICERD Industrial Organisation Seminars
Algorithmic Pricing and Competition: Empirical Evidence from the German Retail Gasoline Market
Daniel Ershov (University College London)
Monday 15 May 2023 12:30 - 14:00
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About this event
We provide the first empirical analysis of the relationship between algorithmic pricing (AP) and competition by studying the impact of adoption in Germany's retail gasoline market, where software became widely available in 2017. Because adoption dates are unknown, we identify adopting stations by testing for structural breaks in AP markers, finding most breaks to be around the time of widespread AP introduction. Because station adoption is endogenous, we instrument using headquarters adoption. Adoption increases margins, but only for non-monopoly stations. In duopoly stations, margins increase only if both stations adopt, suggesting that AP has a significant effect on competition.
Industrial Organisation seminars are held on Mondays in term time at 12:30-14:00, in person in SAL 3.05, unless specified otherwise.
Seminar organiser: Alessandro Gavazza.
For further information please contact Sadia Ali: firstname.lastname@example.org.
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