Analyzing gasoline prices in five Italian cities: Insights from social network analysis

Abstract

Gasoline is an essential commodity, almost as important as food and clothing. Our research delves into the factors that could influence the consumer price of gasoline using social network analysis. Different factors influence gas stations' pricing strategies, including their location and proximity to competitors. We conducted an urban network analysis, examining the network position of nearly 700 gas stations across five Italian cities. Our findings indicate that different network positions are associated with varying gasoline prices. We discovered that centrality metrics, such as betweenness and distinctiveness, are the most informative. Our study has significant implications for managers seeking to improve their consumer pricing strategy. In addition, network analysis can support urban planning decisions, thereby fostering a sustainable environment that benefits both citizens and businesses alike.