| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5058472 | Economics Letters | 2016 | 5 Pages |
â¢We empirically investigate the importance of network centrality for pricing.â¢Firms located closely to a local market center are more powerful in the pricing game.â¢Centrality is more important in larger markets (as the number of firms increases).
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.
