The impact of process innovation on prices:Evidence from automated fuel retailing in The Netherlands
In the last decade, many European countries have seen a sharp increase in the number of automated fueling stations. We study the effect of this process innovation on prices at stations that are automated and their competitors using a difference-in-differences matching strategy. Our estimates show that prices at automated stations drop by 1.7 to 3.2% immediately after conversion and stabilize at this lower level. Unlike previous studies, our estimates do not reveal a difference in impact between early and later adopters of automation. Indicative of competitive spillovers, prices at stations wit... Mehr ...
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| Dokumenttyp: | Artikel |
| Erscheinungsdatum: | 2018 |
| Reihe/Periodikum: | Soetevent , A R & Bruzikas , T 2018 , ' The impact of process innovation on prices : Evidence from automated fuel retailing in The Netherlands ' , European Economic Review , vol. 110 , pp. 181-196 . https://doi.org/10.1016/j.euroecorev.2018.07.008 |
| Schlagwörter: | Technology adoption / Retail gasoline markets / Pricing / GASOLINE MARKETS / COMPETITION / COLLUSION / STATIONS |
| Sprache: | Englisch |
| Permalink: | https://search.fid-benelux.de/Record/base-27211505 |
| Datenquelle: | BASE; Originalkatalog |
| Powered By: | BASE |
| Link(s) : | https://hdl.handle.net/11370/e0f47917-f589-4de1-9442-41f2a5b55ccb |
In the last decade, many European countries have seen a sharp increase in the number of automated fueling stations. We study the effect of this process innovation on prices at stations that are automated and their competitors using a difference-in-differences matching strategy. Our estimates show that prices at automated stations drop by 1.7 to 3.2% immediately after conversion and stabilize at this lower level. Unlike previous studies, our estimates do not reveal a difference in impact between early and later adopters of automation. Indicative of competitive spillovers, prices at stations within 2 km of an automated station decrease on average with a precisely estimated 0.2%. (C) 2018 Elsevier B.V. All rights reserved.