To: Rodney King
Actually, FTC Data show that all but four states had wholesale market concentrations greater than an HHI score of 1000, and four of the five Petroleum Administrative Defense Districts (PADDs) had refinery market concentrations greater than 1000. The East Cost (PADD I) had an HHI of 1943 in 2003. USDOJ merger guidelines characterize HHIs greater than 1000 as "Concentrated" and those above 1800 as "Highly Concentrated". I would argue that, since demand is inelastic in the short term, firms get more power at lower levels of market concentration in the gasoline industry than in others. I don't have data on retail market concentrations, but given the fact that in most states there are large numbers of either franchised or corporate retailers (as opposed to independents), that the retail market is not easily separated from the wholesale market (both are simply "downstream").
21 posted on
09/29/2005 12:18:24 PM PDT by
NYFriend
To: NYFriend
Well, I guess I'd like to see that data if you can find it. It's not that I don't believe you, its just hard to comment on.
42 posted on
09/29/2005 1:19:11 PM PDT by
Rodney King
(No, we can't all just get along.)
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