Browse > Article
http://dx.doi.org/10.12812/ksms.2015.17.3.331

The Pricing Behavior of Korean Gas Stations  

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)
Publication Information
Journal of the Korea Safety Management & Science / v.17, no.3, 2015 , pp. 331-341 More about this Journal
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
Gasoline Price; Location; Price Competition; Pricing Strategy;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Min-Kim(2004), "An application of GIS technique to analyze the sales area and the location of gas station in Tea-jeon city." Journal of Geographic Information System Association of Korea. 2004-07 (29):211-228
2 Dong-hun Kim, Hyung-Gun KIM, Ji-yon Lee(2012), "Ciompetitive Effects of Independent Gas Stations." Korea Academic Society of Industrial Organization, 20(3): 1-21
3 Sang Kwon Kim(2010), "Monopoly Power in the Gasoline Market" Journal of Regulation Studies, 19(2): 137-155
4 Jong-Ho Kim, Dae-Wook Kim(2009), "An Empirical Study on the Retail Gasoline Price Dispersion." Korea Academic Society of Industrial Organization, 17(2): 37-61
5 Jong-Ho Kim, Dae-Wook Kim(2010), "Brand and Competition in the Korean Retail Gasoline Market." Korea Academic Society of Industrial Organization, 18(2): 75-95
6 Jong-Ho Kim, Dae-Wook Kim(2011), "The Impact of the Entry of Self-Service Stations in the Korean Retail Gasoline Market: Evidence from the Difference-in-Differences Methods." The Korean Economic Review, 59(2): 77-99
7 Hyun-Jong Kim (2010), "An Analysis on Relevant Market Delineation." Korea Energy Economics Institute, 5(1): 1-25
8 Hyung-Gun Kim, Youn Seol(2010), "Price Volatility of Korean Gasoline and Diesel : Determinants and Leverage Effects." Korea Industrial Economic Association, 23(6): 2981-3001
9 Jae Hyun Nahm, Seon Ah Oh(2009), "The Effects of Vertical Relation on Price Competition in Retail Gasoline Markets in Seoul." Korea Academic Society of Industrial Organization, 18(2): 19-41
10 Yoon Seo Park et al.(2008), "Comparing the Service Quality Models for Retail Stores and Applying to the Gas Station Service." Korean Marketing Management Association, 13 (3): 79-109
11 Byung Ryul Bae, Yong-Su Park(1999), "The Relationships of Channel Conflict Causes, Conflict Levels,and Channel Members' Satisfaction." The Korean Academic Association of Business Administration, 20: 79-102
12 Yang-Hoon Sonn, In-gang Na(2002), "The Determination of Gasoline Pricing and The Policy Effect of Deregulation." Environmental and Resource Economics Review, 11(3): 493-513
13 Hyung Ho Youn, Eui Young Lee(2008), "The Analysis of Gasoline Price Determination and Station Exits." The Korean Small Business Review 30(2): 61-78
14 Hyung Ho Youn, Eui Young Lee(2008), "The Analysis of Gasoline Price Determination in Seoul." Korea Academic Society of Industrial Organization, 16(2): 75-94
15 Dal-Sok Lee, Jeong-Soo Shin(2006), "A Study on the Pricing in Retail Gasoline Market." Korean Energy Economic Review 5(1): 1-25
16 Sung-Keun Lee(2003), "The Effects of Transportation Tax on Gasoline Consumption", Korean Energy Economic Review 2(2): 133-153
17 Sung Tae Lee, Myung Hun Lee(2001), "Estimation of Gasoline Price Elasticities of Demand for Automobile Fuel Efficiency in Korea: A Hedonic Approach." Environmental and Resource Economics Review 10(1): 45-64
18 Chea-Un Lim, Ho-Taek Yi, Joseph Lee(2010), "The Determinants of Gasoline Retail Price: Based On Customer Factors and Market Structure." Korean Academy Of Commodity Science & Technology. 28(4): 11-21
19 Young-jin Jo(2013), "The Effects of Competition in the Korean Gasoline Markets." Master's Thesis, Hanyang University.
20 Yong-Hoon Choi et al. (2014), "Determinants Factor for the Gasoline Price at Gas Stations." Journal of the KRSA, 30(1): 19-34
21 Andrew Eckert & Douglas S. West(2004), "A tale of two cities Price uniformity and price volatility in gasoline retailing," The Annals of Regional Science 38, pp.25-46   DOI
22 Justine Hastings(2004), "Vertical Relationships and Competition in Retail Gasoline Markets: An Empirical Evidence from Contract Changes in Southern California," American Economic Review," 94(1): 317-328   DOI
23 Andrew Eckert, Douglas S. West(2005), "Price uniformity and competition in a retail gasoline market," Journal of Economic Behavior&Organization, 56(2): 219-237   DOI
24 Ronald N. Johnson & Charles J.Romeo(2000), "The impact of self-service bans in the retail gasoline market," The Review of Economics and Statistics, 82(4): 625-633   DOI
25 Rosen, S(1974). "Hedonic prices and implicit markets: product differentiation in pure competition." The Journal of Political Economy, 85(1): 34-55
26 Andrea Shepard(1991), "Price Discrimination and Retail Configuration," Journal of Political Economy. 99(1): 30-53   DOI