Retail Gasoline Markets as Networks
20 Pages Posted: 26 Feb 2010
Date Written: February 24, 2010
The structure of a gasoline market can be an important element in the pricing choices of its participants. However, structure is often measured only indirectly by, for example, the number of independent sellers, or by seller density. Here we present a more direct and literal way of exploring market structure by representing it as a network. We use the structure of the network to delineate submarkets and present some measures from mathematical sociology which can be used to summarise aspects of network structure for use in further analysis. Although our case study here is in retail gasoline markets, the approach has broader application wherever spatial competition is important.
Keywords: Edgeworth Cycles, retail gasoline
JEL Classification: C65, L13, L81
Suggested Citation: Suggested Citation