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Dewenter, R., Heimeshoff, U., Lüth, H. Less Pain at the Pump? The Effects of Regulatory Interventions in Retail Gasoline Markets. Applied Economics Quarterly, 63(3), 259-274. https://doi.org/10.3790/aeq.63.3.259
Dewenter, Ralf; Heimeshoff, Ulrich and Lüth, Hendrik "Less Pain at the Pump? The Effects of Regulatory Interventions in Retail Gasoline Markets" Applied Economics Quarterly 63.3, , 259-274. https://doi.org/10.3790/aeq.63.3.259
Dewenter, Ralf/Heimeshoff, Ulrich/Lüth, Hendrik: Less Pain at the Pump? The Effects of Regulatory Interventions in Retail Gasoline Markets, in: Applied Economics Quarterly, vol. 63, iss. 3, 259-274, [online] https://doi.org/10.3790/aeq.63.3.259

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Less Pain at the Pump? The Effects of Regulatory Interventions in Retail Gasoline Markets

Dewenter, Ralf | Heimeshoff, Ulrich | Lüth, Hendrik

Applied Economics Quarterly, Vol. 63 (2017), Iss. 3 : pp. 259–274

9 Citations (CrossRef)

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Author Details

Dewenter, Ralf, Department of Economics, Helmut-Schmidt-University, Hamburg, Germany.

Heimeshoff, Ulrich, Institute for Competition Economics, Heinrich-Heine-University, Düsseldorf, Germany.

Lüth, Hendrik, Department of Economics, Helmut-Schmidt-University, Hamburg, Germany.

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Abstract

Abstract

Increasing price levels, high price volatility and the suspicion of collusive behavior are important topics of public debates on competition in retail gasoline markets in many countries. Several governments and competition authorities introduced fuel price regulations in form of restrictions on the frequencies of fuel price changes per day. We present empirical evidence of the effects of fuel price regulation in Austria and Western Australia using difference-indifferences methods to estimate treatment effects of the implementation of such pricing rules. Our estimates provide evidence that fuel price levels in Austria decreased after implementation of regulation. However, we cannot find robust significant effects of regulation on fuel price levels in Western Australia.

JEL-Classification: L52, L11, L71

Keywords: regulation, fuel price, Austria, Australia