Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Network Centrality and Market Prices: An Empirical Note
(), Dieter Pennerstorfer
() and Christoph R. Weiss
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.
Keywords: Network Centrality, Spatial Competition, Retail Markets, Gasoline Prices; (follow links to similar papers)
JEL-Codes: C21,; D43,; L11,; L81,; R12; (follow links to similar papers)
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