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Keyword: flex-fuel vehicles;
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We study how the diffusion of flex (bi-fuel) cars affected competition on ethanol and gasoline retail markets. We propose a model of price competition in which the two fuels become closer substitutes as flex cars penetra...Read more...
Juliano Assuncao, Joao Paulo Pessoa and Leonardo Rezende
1 March 2019
In Brazil, gasoline and ethanol coexist as automotive fuels and are becoming closer substitutes as flex cars become more widely adopted. We employ this source of variation in a large panel of weekly prices at the station...Read more...
13 December 2013