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.




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
Open Access N
JEL C21, D43, L11, L81, R12


Price Dispersion in Space: Evidence from Micro-Data on the Austrian Gasoline Market
Weiss, Christoph (Details)
Pennerstorfer, Dieter (Former researcher)
Firgo, Matthias (Former researcher)
Department of Economics (Weiss) (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5370 Industrial economics (Details)
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