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Applied Microeconomics | Industrial Organization: Algorithmic Pricing and Competition: Empirical Evidence from the German Retail Gasoline Market

Robert Clark, Queen’s University
Friday, March 5, 2021
10:00-11:00 AM
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 non-monopoly stations. In duopoly markets, margins increase only if both stations adopt, suggesting that AP has a significant effect on competition.

* To join the seminar, please contact at
Building: Off Campus Location
Location: Virtual
Event Type: Workshop / Seminar
Tags: Economics, seminar
Source: Happening @ Michigan from Department of Economics, Applied Microeconomics/Industrial Organization