A Mathematical Theory of Store Operation

Bart Nooteboom

No 272145, Econometric Institute Archives from Erasmus University Rotterdam

Abstract: A micro model is developed to explain the empirical phenomenon found in retailing of a linear cost curve with a positive intercept. The model employs queing theory together with the concept of a minimum "threshold" capacity. It takes into account excess capacity due to varying intensities of demand and idle capacity in between arrivals of customers. A shop is treated as a multi-channel service unit with additional non-service activities.

Keywords: Agricultural and Food Policy; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 70
Date: 1977-03
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eureia:272145

DOI: 10.22004/ag.econ.272145

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