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.
