Spatial retail markets

Richard J. Claycombe

International Journal of Industrial Organization, 1991, vol. 9, issue 2, 303-313

Abstract: In retail markets, the nature of spatial cost differs markedly from specifications given in traditional spatial models. At the retail level, transportation is provided by the household and incurred on a per shopping trip basis. In traditional models, the source of transportation is ignored and the cost specified to accrue on a per unit basis. Additionally, in a retail market, spatial cost may be obviated altogether by virtue of a commute. When these characteristics are taken into account, the spatial retail model is inherently more competitive in structure and performance than the traditional spatial model.

Date: 1991
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