| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5103742 | Regional Science and Urban Economics | 2017 | 35 Pages |
Abstract
The heterogeneous coefficients spatial autoregressive panel data model uses the large sample of daily time periods to produce spatial autoregressive model estimates for each fueling station. These estimates provide information regarding the price reaction function of each station to its duopoly rival station. This is in contrast to conventional estimates of price reaction functions that average over the entire cross-sectional sample of stations. We show how these estimates can be used to infer competition versus cooperation in price setting by individual stations.
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Authors
James P. LeSage, Colin Vance, Yao-Yu Chih,