Buy Here, or Keep Driving? The Effect of Geographic Market Density on Retail Gas Prices


  • Daniel K.N. Johnson Gerald L. Schlessman Professor of Economics, Department of Economics and Business Colorado College 14 East Cache La Poudre Street Colorado Springs, CO, 80903, USA
  • Amy Schultheis Accountant Assistant at Bankrate Insurance, 1860 Blake Street #900, Denver, CO 80202
  • Kristina M. Lybecker Assistant Professor of Economics at Colorado College, 14 East Cache La Poudre, Colorado Springs, CO 80903
  • Devin Nadar Alumna of Colorado College, 14 East Cache La Poudre, Colorado Springs, CO 80903



Gas, Geography, Retail price, Spatial competition, Retail price.


This paper examines whether the presence of local competitors affects the retail price of gasoline in mid-sized American cities.  Spatial regression analysis permits an answer that is clear of potentially confounding statistical problems.  Results continue to show small impacts of local competition, especially compared to other factors.  


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