Network Centrality and Market Prices: Empirical Evidence

Matthias Firgo; Dieter Pennerstorfer; Christoph Weiss

doi:10.1016/j.econlet.2015.11.032

Network Centrality and Market Prices: Empirical Evidence

Matthias Firgo, Dieter Pennerstorfer, Christoph Weiss

Department für Volkswirtschaft (Weiss)

Publikation: Wissenschaftliche Fachzeitschrift › Originalbeitrag in Fachzeitschrift › Begutachtung

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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.

Originalsprache	Englisch
Seiten (von - bis)	79 - 83
Fachzeitschrift	Economics Letters
Jahrgang	139
DOIs	https://doi.org/10.1016/j.econlet.2015.11.032
Publikationsstatus	Veröffentlicht - 2016

Österreichische Systematik der Wissenschaftszweige (ÖFOS)

502013 Industrieökonomik
507016 Regionalökonomie

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10.1016/j.econlet.2015.11.032Lizenz: Nicht angegeben

Firgo Pennerstorfer Weiss 2016 Economics Letters Network Centrality and Market Prices Accepted ManuscriptAkzeptiertes Autor*inn*enmanuskript, 939 KBLizenz: Sonstige

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Katalog der Universitätsbibliothek

Preis Dispersion im Raum: Empirische Evidenz für den österreichischen Tankstellenmarkt
Weiss, C. (Projektleitung), Jost, B. (Forscher*in) & Pennerstorfer, D. (Forscher*in)
1/09/08 → 31/08/12
Projekt: Forschungsförderung

Zitat

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title = "Network Centrality and Market Prices: Empirical Evidence",

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{\textquoteright} pricing behavior and further find that the importance of centrality increases with market size.",

author = "Matthias Firgo and Dieter Pennerstorfer and Christoph Weiss",

year = "2016",

doi = "10.1016/j.econlet.2015.11.032",

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T1 - Network Centrality and Market Prices: Empirical Evidence

AU - Firgo, Matthias

AU - Pennerstorfer, Dieter

AU - Weiss, Christoph

PY - 2016

Y1 - 2016

N2 - 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.

AB - 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.

U2 - 10.1016/j.econlet.2015.11.032

DO - 10.1016/j.econlet.2015.11.032

M3 - Journal article

SN - 0165-1765

VL - 139

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JO - Economics Letters

JF - Economics Letters

ER -

Network Centrality and Market Prices: Empirical Evidence

Abstract

Österreichische Systematik der Wissenschaftszweige (ÖFOS)

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Projekte

Preis Dispersion im Raum: Empirische Evidenz für den österreichischen Tankstellenmarkt

Zitat