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Algorithmic Pricing and Competition: Empirical Evidence from the German Retail Gasoline Market

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Authors: Stephanie Assad, Robert Clark, Daniel Ershov, Lei Xu
Year: 2024
Journal: Journal of Political Economy
DOI: 10.1086/726906

Keywords: algorithmic pricing, competition, gasoline market, Germany, artificial intelligence

Abstract

First empirical analysis of algorithmic pricing and competition. Adoption increases margins for non-monopoly stations. In duopoly and triopoly markets, margins increase only if all stations adopt, suggesting AP significantly affects competition.

Cite this paper

bibtex
@misc{algorithmicpricingcompetition2024,
  title  = {Algorithmic Pricing and Competition: Empirical Evidence from the German Retail Gasoline Market},
  author = {Stephanie Assad, Robert Clark, Daniel Ershov, Lei Xu},
  year   = {2024},
  journal = {Journal of Political Economy},
  doi    = {10.1086/726906},
  url    = {https://doi.org/10.1086/726906},
}

Source files

Released under the MIT License.