Journal of Industry, Competition and Trade

, Volume 18, Issue 1, pp 47–58 | Cite as

Is the Retail Gasoline Market Local or National?

  • Michal Kvasnička
  • Rostislav Staněk
  • Ondřej KrčálEmail author


This paper studies the effect of station density on prices in the retail gasoline market in the Czech Republic. We estimate the impact of the number of competing stations in various driving-distance ranges around each station on prices. We find that station density has a negative effect on prices; the effect decreases with distance and is statistically significant up to six kilometers. This suggests that the retail gasoline market is local rather than national.


Geographical relevant market Retail gasoline market Station density Prices 

JEL Classification

L13 L41 L81 R32 



We thank Mr. Marcel Matula of Pumpdroid for kindly providing us with the data.


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Copyright information

© Springer Science+Business Media New York 2017

Authors and Affiliations

  1. 1.Department of EconomicsMasaryk UniversityBrnoCzech Republic

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