Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279317 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10566
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the effect of entry on the price distribution in the German retail gasoline market. Exploiting more than 700 entries over five years in an event study design, we find that entry causes a persistent first-order stochastic shift in the price distribution. Prices at the top of the distribution change moderately only, but prices at the left tail decrease by up to 12% of stations' gross margins. Consumers with easy access to information on prices gain the most from entry. The reduction in transaction prices is 32-44% stronger for fully informed consumers than for uninformed consumers.
Subjects: 
entry
information frictions
price distribution
(unconditional) quantile treatment effects
JEL: 
D22
L11
D83
L81
R32
Document Type: 
Working Paper
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