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Daniel Ershov, Assistant Professor, Toulouse School of Economics
Wednesday 20 October 2021, 15:00-16:00
Online seminar – Algorithmic pricing and competition: Empirical evidence from the German retail gasoline market
- 👤 Speaker: Daniel Ershov, Assistant Professor, Toulouse School of Economics
- 📅 Date & Time: Wednesday 20 October 2021, 15:00 - 16:00
- 📍 Venue: via zoom
Abstract
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 headquarters adoption. Adoption increases margins, but only for non-monopoly stations. In duopoly stations, margins increase only if both stations adopt, suggesting that AP has a significant effect on competition.
Series This talk is part of the Economics & Policy Seminars, CJBS series.
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