Quotation Firgo, Matthias, Pennerstorfer, Dieter, Weiss, Christoph. 2016. Network Centrality and Market Prices: Empirical Evidence. Economics Letters 139, 79-83.


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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 Journal article
Journal Economics Letters
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-B, WH-B
Language English
Title Network Centrality and Market Prices: Empirical Evidence
Volume 139
Year 2016
Page from 79
Page to 83
Reviewed? Y
URL http://dx.doi.org/10.1016/j.econlet.2015.11.032
DOI http://dx.doi.org/10.1016/j.econlet.2015.11.032
JEL C21, D43, L11, L81, R12

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)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5370 Industrial economics (Details)
5618 Regional economy (Details)
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