Paradise at a Loss: Estimating Market Power in Hawaiian Gasoline Markets
نویسندگان
چکیده
We present a method for analyzing the exercise of market power in an industry in which each firm produces multiple competing goods. We use the method to study the market power of refiners in Hawaii. These refiners sell in two principal markets: jet fuel, with a buyers consortium, and gasoline, with diffuse buyers. With data from January 1992 through the new millennium, we find significant evidence of the exercise of market power by refiners in the wholesale gasoline market. In contrast, we do not find evidence of market power by these refiners in the jet fuel market.
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