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.
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:5582 |
| Date | 02 1900 |
| Creators | Firgo, Matthias, Pennerstorfer, Dieter, Weiss, Christoph |
| Publisher | Elsevier |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Article, PeerReviewed |
| Format | application/pdf |
| Relation | http://dx.doi.org/10.1016/j.econlet.2015.11.032, https://www.elsevier.com/, http://epub.wu.ac.at/5582/ |
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