Regulatory Restrictions on Vertical Integration and Control: The Competitive Impact of Gasoline Divorcement Policies

@inproceedings{Breen1999RegulatoryRO,
  title={Regulatory Restrictions on Vertical Integration and Control: The Competitive Impact of Gasoline Divorcement Policies},
  author={Denis Breen and Jeffrey Fischer and Dan Hosken and Pauline M. Ippolito and Paul A. Pautler and Michael G. Vita},
  year={1999}
}
Gasoline “divorcement” regulations restrict the integration of gasoline refiners and retailers. Theoretically, vertical integration can harm competition, making it possible that divorcement policies could increase welfare; alternatively, these policies may reduce welfare by sacrificing efficiencies. This paper attempts to differentiate between these possibilities by estimating a reduced form equation for the real retail price of unleaded regular gasoline. I find that divorcement regulations… CONTINUE READING
Highly Cited
This paper has 23 citations. REVIEW CITATIONS