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Many supermarkets offer grocery-gasoline bundled discounts whereby supermarket customers whose grocery purchase is above a certain dollar amount are offered a gasoline price discount. This paper takes a first step toward understanding this practice of bundled discount. We use nearly ideal gasoline price data to study the short-and long-run competitive effects of grocery-gasoline bundled discounts in an Australian market. The evidence suggests that bundling gasoline sites operated bydoi:10.2139/ssrn.1628770 fatcat:e64biwvmivgkhaxlj5njykiz6q