Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/86905 
Year of Publication: 
2008
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 08-117/1
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
Where markets are insufficiently competitive, governments can intervene by auctioninglicenses to operate or by forcing divestitures. The Dutch government has doneexactly that, organizing auctions to redistribute tenancy rights for highway gasolinestations and forcing the divestiture of outlets of four majors. We evaluate this policyexperiment using panel data containing detailed price information. We find that anobligation to divest lowers prices by over 2% while the auctioning of licenses withoutsuch an obligation has no discernible effect. We find weak evidence for price effects onnearby competitors.
Subjects: 
Divestitures
Auctions
Entry
Policy Evaluation
JEL: 
D43
D44
L11
Document Type: 
Working Paper

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