Matthias Firgo, Dieter Pennerstorfer, Christoph R. Weiss
Network Centrality and Market Prices. An Empirical Note
WIFO Working Papers, 2015, (503), 18 Seiten
Online seit: 28.09.2015 0:00
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:Network Centrality, Spatial Competition, Retail Markets, Gasoline Prices
Forschungsbereich:Strukturwandel und Regionalentwicklung