Cannibalization in a Competitive Environment

Tammy Drezner
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Tammy Drezner: Department of Information Systems and Decision Sciences, Steven G. Mihaylo College of Business and Economics, California State University-Fullerton, Fullerton, CA, USA, tdrezner@fullerton.edu

International Regional Science Review, 2011, vol. 34, issue 3, 306-322

Abstract: In this article, cannibalization and its effects on location decisions in a competitive retail environment is investigated. The authors analyze maximizing market share while minimizing cannibalization using the gravity (Huff) model. The efficient frontier according to these two noncompatible objectives is constructed and illustrated on an example problem. An easy to implement analysis that provides insight into management decisions is provided. To illustrate the ease of implementing the model using Excel, a description of the spreadsheet along with the Visual Basic for Applications (VBA) code are provided.

Keywords: competitive location; cannibalization; efficient frontier (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:inrsre:v:34:y:2011:i:3:p:306-322

DOI: 10.1177/0160017610389328

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