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

• 成果类型: Article
• 署名作者: Assad, Stephanie; Clark, Robert; Ershov, Daniel; Xu, Lei
• 署名单位: Queens University - Canada; University of London; University College London; University of Navarra; IESE Business School
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/726906
• 发表日期: 2024
• 页码: 723-771
• 关键词: discrimination; collusion; prices; oligopoly; tests

摘要

We provide the first empirical analysis of the relationship between algorithmic pricing (AP) and competition by studying the impact of adoption in Germany's retail gasoline market, where software became widely available in 2017. Because adoption dates are unknown, we identify adopting stations by testing for structural breaks in AP markers, finding most breaks to be around the time of widespread AP introduction. Because station adoption is endogenous, we instrument using headquarter adoption. Adoption increases margins but only for nonmonopoly stations. In duopoly and triopoly markets, margins increase only if all stations adopt, suggesting that AP has a significant effect on competition.