Journal of the Korea Safety Management & Science (대한안전경영과학회지)

Korea Safety Management & Science (대한안전경영과학회)
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The Pricing Behavior of Korean Gas Stations

주유소의 가격결정전략

  • Jo, Young Jin (Department of Applied Economics, Hanyang University) ;
  • Lee, Jee Hoon (Division of Business Administration, Sejong University) ;
  • Yoon, Choong Han (Division of Economics, ERICA Campus, Hanyang University)
  • Received : 2015.07.20
  • Accepted : 2015.09.21
  • Published : 2015.09.30
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Abstract

Gasoline prices vary across Korea. Some gas stations charge higher prices, while others charge lower prices. In this paper, we try to find: why gasoline prices differ markedly across regions. We empirically estimate the determinants of gas prices by incorporating supply side factors as well as demand side factors into the empirical model. Empirical results show that both location-specific factors and store-specific factors affect gas prices. Concentration of competing stores, store brands, ownership of gas stations, and self-service availability influence gas prices. In addition, the availability of other customer services such as convenience stores, car wash, and auto repairs affects gas prices.

Keywords

References

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