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The Role of Economic Space in Decision Making

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  • Margaret E. Slade

Abstract

This paper analyzes the role that economic space plays in private and public decision making. Both geographic and characteristic space are considered. The choice of spatial location, whether it be a physical location or a product position, can have significant consequences for other economic decisions, and those secondary decisions are the focus of the paper. In particular, it is useful to have methods of measuring economic proximity in geographic and characteristic space and to have ways of determining the implications of that proximity for market outcomes. I summarize some of the methods that my coauthors and I have developed for estimating economic distance and for assessing its implications.

Suggested Citation

  • Margaret E. Slade, 2005. "The Role of Economic Space in Decision Making," Annals of Economics and Statistics, GENES, issue 77, pages 1-20.
    • Handle: RePEc:adr:anecst:y:2005:i:77:p:1-20
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    File URL: http://www.jstor.org/stable/20079111
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    Cited by:

    1. Victor Aguirregabiria & Gustavo Vicentini, 2006. "Dynamic Spatial Competition Between Multi-Store Firms," Working Papers tecipa-253, University of Toronto, Department of Economics.
    2. Luisa Corrado & Bernard Fingleton, 2012. "Where Is The Economics In Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 210-239, May.
    3. Sabina Buczkowska & Nicolas Coulombel & Matthieu de Lapparent, 2015. "Euclidean distance versus travel time in business location: A probabilistic mixture of hurdle-Poisson models," ERSA conference papers ersa15p1060, European Regional Science Association.
    4. Javier Elizalde, 2013. "Market definition with differentiated products: a spatial competition application," European Journal of Law and Economics, Springer, vol. 36(3), pages 471-521, December.
    5. Victor Aguirregabiria & Gustavo Vicentini, 2016. "Dynamic Spatial Competition Between Multi-Store Retailers," Journal of Industrial Economics, Wiley Blackwell, vol. 64(4), pages 710-754, December.
    6. Sabina Buczkowska & Nicolas Coulombel & Matthieu Lapparent, 2019. "A comparison of Euclidean Distance, Travel Times, and Network Distances in Location Choice Mixture Models," Networks and Spatial Economics, Springer, vol. 19(4), pages 1215-1248, December.
    7. Corrado, L. & Fingleton, B., 2011. "Multilevel Modelling with Spatial Effects," SIRE Discussion Papers 2011-13, Scottish Institute for Research in Economics (SIRE).
    8. Joris Pinkse & Margaret Slade, 2007. "Semi-structural models of advertising competition," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1227-1246.

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