Price controls and competition in gasoline retail markets∗
نویسندگان
چکیده
We estimate the effect of a price floor regulation implemented in the Canadian province of Quebec beginning in 1997 and find that it substantially reduced the entry and exit of stations in local Quebec markets. We show that as a result of the policy, competition was higher and prices were lower in Quebec compared with a control group of unregulated markets in the neighboring province of Ontario. The study is based on a large sample of stations in Quebec and Ontario before and after the implementation of the policy. Our results highlight the fact that price regulation affects market structure and can therefore have unintended consequences.
منابع مشابه
Price Controls and Market Structure: Evidence From Gasoline Retail Markets
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