Matthias Firgo, Dieter Pennerstorfer, Christoph Weiss,
"Centrality and Pricing in Spatially Differentiated Markets: The Case of Gasoline"
, in International Journal of Industrial Organization, Vol. 40, Seite(n) 81-90, 2015, ISSN: 1873-7986
Original Titel:
Centrality and Pricing in Spatially Differentiated Markets: The Case of Gasoline
Sprache des Titels:
Englisch
Original Kurzfassung:
We highlight the importance of 'centrality' for pricing. Firms characterized by a more central position in a spatial network are more powerful in terms of having a stronger impact on their competitors' prices and on equilibrium prices. These propositions are derived from a simple theoretical model and investigated empirically for the retail gasoline market of Vienna, Austria. We compute a measure of network centrality based on the locations of gasoline stations in the road network. Results from a spatial autoregressive model show that prices of gasoline stations are more strongly correlated with prices of central competitors.
Forschungs-