Competition drives gas prices to fluctuate, benefiting informed consumers more.
The study looked at how prices change when there are more competitors in the market. They used data on gasoline prices in the Netherlands and found that as competition increases, prices spread out: low prices go down while high prices go up. This means that competition affects prices in an uneven way. The results suggest that consumers benefit from more gas stations, but those who know more prices benefit more. Overall, having more gas stations is good for consumers in the Netherlands, but some benefit more than others.