Farbmacher group
Data Driven Market Segmentation
To be able to analyze the structure of local markets and competition among businesses, knowledge about the extent of these market is important. Lawmakers and competition authorities often use vague and seemingly arbitrary rule of thumb, such as fixed distances or travel times between competitors. I discuss possibilities of data-driven market delineation in the German gas station market using a comprehensive database that includes virtually all German stations, as well as each station’s price changes since 2014.