Autor: Culós María T. Verónica(*), Gabrielli María Florencia(**), Herrera Gómez Marcos(***)
Institución: (*)UNCuyo, (**)Universidad de Desarrollo, (***)IELDE-unas
The liquid fuels market in Argentina is characterized by a high level of concentration, especially in local geographic areas. This paper studies the demand of the liquid fuels wholesale chain in Argentina, using the discrete choice approach, based on the premise that different firms offer differentiated goods, by virtue of the intrinsic characteristics of the good, and that such differentiation gives them the power to set prices above marginal production costs. The difference between prices and marginal costs determines the firms market power. Using a novel dataset, we provide new empirical evidence that quantifies market power across firms and regions.