The retail gasoline market in the Lisbon metropolitan area - a spatial competition analisys

This paper analyses the determinants of the price of gasoline on the retail fuel market in the Lisbon Metropolitan Area, Portugal. Through a Spatial Autoregressive model that solves for the best response functions of gas stations, evidence was found that location and geographic boundaries of competition have effects on gasoline prices. Moreover, results also indicate that the characteristics of a gas station, that include its Brand and service offer, are more relevant indicators of price alterations than socioeconomic characteristics of the market