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Can I classify the fuel trading market (wholesalers buying and selling fuel by phone) as a market with near-perfect competition?

It is a market with many sellers and buyers, the product is homogeneous, relatively low barriers to entry, non-increasing returns to scale, rational buyers, etc.

I know they use third degree price discrimination since they are selling the same product to different prices to different buyers, but since they also provide support through phone, they are somehow differentiating their product.

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  • $\begingroup$ Don't you mean third degree price discrimination? $\endgroup$ – Giskard Jun 20 '15 at 20:37
  • $\begingroup$ Fuel as in petroleum distillates? Yes. It gets a little funky in some special markets (high-ozone areas where they use special gasoline blends which require a high fixed cost to change over to produce, so in equilibrium few refineries do so), but outside of weird things like that, yes. $\endgroup$ – dismalscience Jun 21 '15 at 2:02

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