Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102688
Authors: 
Wein, Thomas
Year of Publication: 
2014
Series/Report no.: 
University of Lüneburg Working Paper Series in Economics 309
Abstract: 
There is a discrepancy between Europe and the United States on whether margin squeeze is a relevant question for competition law and policy. Beyond this question, it is unclear whether law and the Cartel Office can detect margin squeeze, assuming it is necessary to look into the matter. In Germany, politicians have decided the given rule against margin squeeze should not be abolished, especially because of problems in the gasoline market. This paper discusses a comprehensive microeconomic new explanation on margin squeeze, and discusses some of the problems used to detect margin squeeze in the gasoline market. After comparing theoretical shortcuts, practical challenges and efforts towards enforcement with expected benefits, this paper concludes competition law should ignore the margin squeeze problem.
Subjects: 
margin squeeze
gasoline market
market dominance
JEL: 
K21
L13
L44
Document Type: 
Working Paper

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