Results

Journal article

International Journal of Industrial Organization:

Flex cars and competition in fuel retail markets

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...

CEP discussion paper

Flex cars and competition in ethanol and gasoline retail markets

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...