In Canada, as well as in the U.S., the rationalization of retail gasoline networks has been occurring since 1970. Rationalization may be the outcome of a competitive process or a tacitly collusive one. This paper provides a description of how rationalization has played out in retail gasoline markets in Canada, and particularly in the Toronto area, from 1991 to 2002. We also consider whether aggregate Canadian data on gasoline retailing, as well as data from the Toronto area, provide any support for any of the rationalization explanations.
Review of Industrial Organization – Springer Journals
Published: Oct 9, 2004
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