Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2017-05-10
Number: 17-045/VII
Author-Name: Adriaan R. Soetevent
Author-Email: a.r.soetevent@rug.nl
Author-Workplace-Name: University of Groningen
Author-Name: Tadas Bruzikas
Author-Email: tadas.bruzikas@gmail.com
Author-Workplace-Name: University of Groningen
Title: The Impact of Process Innovation on Prices: Evidence from Automated Fuel Retailing in The Netherlands
Abstract: In the last decade, many European countries have seen a sharp increase in the number of automated fueling stations. We study the effect of this process innovation on prices at stations that are automated and their competitors using a difference-in-differences matching strategy. Our estimates show that prices at automated stations drop by 1.0 to 2.1% immediately after conversion and stabilize at this lower level. We find no indication of competitive spillover effects to neighboring sites at the conventional significance levels. Other than previous studies, our estimates do not reveal a difference in impact between early and later adopters of automation.
Classification-JEL: C22, D4, L13, L81
Keywords: technology adoption, retail gasoline, pricing, competition
File-Url: https://papers.tinbergen.nl/17045.pdf
File-Format: application/pdf
File-Size: 2012460 bytes
Handle: RePEc:tin:wpaper:20170045