Quotation Weiss, Christoph, Pennerstorfer, Dieter, Firgo, Matthias. 2015. Centrality and Pricing in Spatially Differentiated Markets: The Case of Gasoline. International Journal of Industrial Organization 40, 81-90.


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Abstract

We highlight the importance of 'centrality' for pricing. Firms characterized by a more central position in a spatial network are more powerful in terms of having a stronger impact on their competitors' prices and on equilibrium prices. These propositions are derived from a simple theoretical model and investigated empirically for the retail gasoline market of Vienna, Austria. We compute a measure of network centrality based on the locations of gasoline stations in the road network. Results from a spatial autoregressive model show that prices of gasoline stations are more strongly correlated with prices of central competitors.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Industrial Organization
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-B, WH-B
Language English
Title Centrality and Pricing in Spatially Differentiated Markets: The Case of Gasoline
Volume 40
Year 2015
Page from 81
Page to 90
Reviewed? Y
URL http://dx.doi.org/10.1016/j.ijindorg.2015.03.009
DOI http://dx.doi.org/10.1016/j.ijindorg.2015.03.009

Associations

Projects
Price Dispersion in Space: Evidence from Micro-Data on the Austrian Gasoline Market
People
Weiss, Christoph (Details)
Pennerstorfer, Dieter (Former researcher)
Firgo, Matthias (Former researcher)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
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