Network Centrality and Market Prices. An Empirical Note

Matthias Firgo, Dieter Pennerstorfer and Christoph Weiss

No 503, WIFO Working Papers from WIFO

Abstract: We empirically investigate the importance of centrality (holding a central position in a spatial network) for strategic interaction in pricing for the Austrian retail gasoline market. Results from spatial autoregressive models suggest that the gasoline station located most closely to the market center – defined as the 1-median location – exerts the strongest effect on pricing decisions of other stations. We conclude that centrality influences firms' pricing behaviour and further find that the importance of centrality increases with market size.

Keywords: Gasoline Prices; Network Centrality; Retail Markets; Spatial Competition (search for similar items in EconPapers)
Pages: 18 pages
Date: 2015-09
New Economics Papers: this item is included in nep-net
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https://www.wifo.ac.at/wwa/pubid/58403 abstract (text/html)

Related works:
Journal Article: Network centrality and market prices: Empirical evidence (2016)
Working Paper: Network Centrality and Market Prices: An Empirical Note (2015)
Working Paper: Network Centrality and Market Prices: An Empirical Note (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2015:i:503

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