Quotation Firgo, Matthias, Pennerstorfer, Dieter, Weiss, Christoph. 2015. Network Centrality and Market Prices: An Empirical Note. WIFO Working Paper, No 503.


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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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Publication's profile

Status of publication Published
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
Institute for Economic Policy and Industrial Economics IN (Details)
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