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This paper examines how the distribution of prices changes with the number of competitors in the market. Using gasoline price data from the Netherlands we ...nd that as competition increases, the distribution of prices spreads out: the low prices go down while the high prices go up, on average. As a result, competition has an asymmetric e¤ect on prices. These ...ndings, which are consistent with a theoretical model where consumers di¤er in the information they have about prices, imply thatdoi:10.2139/ssrn.1440153 fatcat:qubk752lcfdnvjsqxaeoovftki