Firgo, Matthias Pennerstorfer, Dieter Weiss, Christoph R.
Year of Publication:
WIFO Working Papers 503
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 behaviour and further find that the importance of centrality increases with market size.