Network Centrality and Market Prices: An Empirical Note

Matthias Firgo, Dieter Pennerstorfer and Christoph Weiss

No 206, Department of Economics Working Paper Series from WU Vienna University of Economics and Business

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 behavior and further find that the importance of centrality increases with market size. (authors' abstract)

Keywords: Network Centrality; Spatial Competition; Retail Markets; Gasoline Prices (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-ene and nep-ure
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Related works:
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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