Industrial Organization and Price Analysis. Coursework

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June 11, 2020
Questions
1 What is the product of main interest?
1 The product of main interest in this case is gasoline. The authors identified this as the product of main interest after recognizing the fact that the “commuting paths” of the customers can serve as a determinant as to their geographical locations, which can then help predict demand. For example, he utilized a simulation of the price difference of gasoline at a station in Sunoco based on these locations. This confirms that the main product is gasoline.
2 What merger is considered?
2 The only type of merger considered in this case are vertical mergers or vertical integrations. There are no mentions of other types of mergers in this case.
3 Describe the market structure before the merger?
3 The market structure before the merger can be considered as oligopolistic. This is because despite the number of gasoline retai...