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Price Discrimination and Price Dispersion in the Argentine Gasoline Market

This paper analyses the extent of gasoline price differences among provinces in Argentina during the period 1998-2000, and tries to impute those differences to price discrimination and non-price discrimination causes. It also tries to measure the effects of those differences on quantities and welfare. We conclude that price discrimination exists but it is relatively irrelevant to explain most geographic price differences. We also find that, in this case, eliminating price discrimination would lead to ambiguous changes in welfare, but moving to a uniform price scheme (i.e., preventing all geographic price differences) will almost certainly reduce total surplus.