Firgo, Matthias, Pennerstorfer, Dieter, Weiss, Christoph. 2015. Network Centrality and Market Prices: An Empirical Note. WIFO Working Paper, No 503.
BibTeX
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.
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Status of publication | Published |
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Affiliation | WU |
Type of publication | Working/discussion paper, preprint |
Language | English |
Title | Network Centrality and Market Prices: An Empirical Note |
Title of whole publication | WIFO Working Paper, No 503 |
Year | 2015 |
URL | http://www.wifo.ac.at/jart/prj3/wifo/resources/person_dokument/person_dokument.jart?publikationsid=58403&mime_type=application/pdf |
Associations
- Projects
- Price Dispersion in Space: Evidence from Micro-Data on the Austrian Gasoline Market
- People
- Firgo, Matthias (Former researcher)
- Pennerstorfer, Dieter (Former researcher)
- Weiss, Christoph (Details)
- Organization
- Department of Economics (Weiss) (Details)