Discussion Paper Published in the DIW Working Paper Series

In collaboration with Dr. Heike Link (DIW Berlin e.V.), our colleague Dr. Dennis Gaus has published a discussion paper titled "Where and When to Refuel: A Revealed Preferences Approach to Local Gasoline Markets" in the DIW Berlin Working Paper Series. The abstract of the publication is provided below:

This paper provides a systematic analysis of German drivers’ refueling behavior. A dataset combining population-representative individual-level GPS tracking and survey information with data on fuel prices is used to identify 922 refueling stops between April and December 2023. In addition to discussing the data processing and cleaning steps undertaken, the paper provides insights into German fuel price trends and the competitive landscape among gas stations. The analysis of the identified refueling trips shows that drivers most often refuel during shopping trips or on their way home, and during times when prices are known to be relatively low. The choice among available gas stations is primarily based on proximity to the direct route, as drivers avoid detours even if it means paying more. In the context of competition policy and market regulation, the findings suggest that the catchment area of gas stations is smaller than is often assumed when defining competition among gas stations. Nevertheless, the high density of gas stations in Germany provides consumers with a considerable range of choices and gas stations with a competitive environment even in small geographic areas.