European Business Schools Librarian's Group

Department of Economics Working Papers,
Vienna University of Economics and Business, Department of Economics

Network Centrality and Market Prices: An Empirical Note

Matthias Firgo (), Dieter Pennerstorfer () and Christoph R. Weiss ()
Additional contact information
Matthias Firgo: Austrian Institute of Economic Research (WIFO)
Dieter Pennerstorfer: Department of Economics, Vienna University of Economics and Business; Austrian Institute of Economic Research (WIFO)
Christoph R. Weiss: Department of Economics, 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.

Keywords: Network Centrality, Spatial Competition, Retail Markets, Gasoline Prices

JEL-codes: C21; D43; L11; L81; R12 September 2015

Note: PDF Document

Full text files

wp206.pdf PDF-file 

Download statistics

Report problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-15 23:08:28.