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Spatial retail markets

Author

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  • Claycombe, Richard J.

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.

Suggested Citation

  • Claycombe, Richard J., 1991. "Spatial retail markets," International Journal of Industrial Organization, Elsevier, vol. 9(2), pages 303-313, June.
    • Handle: RePEc:eee:indorg:v:9:y:1991:i:2:p:303-313
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    Cited by:

    1. Asplund, Marcus & Sandin, Rickard, 1999. "Competition in interrelated markets: An empirical study," International Journal of Industrial Organization, Elsevier, vol. 17(3), pages 353-369, April.
    2. Koster, Hans R.A. & Pasidis, Ilias & van Ommeren, Jos, 2019. "Shopping externalities and retail concentration: Evidence from dutch shopping streets," Journal of Urban Economics, Elsevier, vol. 114(C).
    3. Jens‐Peter Loy & Dieter Pennerstorfer & Daniela Rroshi & Christoph Weiss & Biliana Yontcheva, 2022. "Consumer Information and Price Transmission: Empirical Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 70(3), pages 631-683, September.
    4. Thomas E. Cooper & John T. Jones, 2007. "Asymmetric Competition on Commuter Routes: The Case of Gasoline Pricing," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 483-504, October.
    5. Jen-Te Yao & Fu-Chuan Lai, 2006. "Incentive consistency and the choice of a spatial pricing mode," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(3), pages 583-601, August.
    6. Guo, Wen-Chung & Lai, Fu-Chuan & Zeng, Dao-Zhi, 2015. "A Hotelling model with production," Mathematical Social Sciences, Elsevier, vol. 73(C), pages 40-49.
    7. Vásquez Cordano, Arturo Leonardo & Rojas, Pedro & Aurazo, José, 2021. "Pricing Coordination in a Spatial Context: Evidence from the Retail Vehicular Natural Gas Market of Peru," Documentos de Trabajo 006, Escuela de Postgrado GERENS.
    8. Yuhei Miyauchi & Kentaro Nakajima & Stephen J. Redding, 2021. "The Economics of Spatial Mobility: Theory and Evidence Using Smartphone Data," NBER Working Papers 28497, National Bureau of Economic Research, Inc.
    9. Pramono, Ari & Oppewal, Harmen, 2021. "Where to refuel: Modeling on-the-way choice of convenience outlet," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    10. Jen-Te Yao & Fu-Chuan Lai, 2006. "A fiscal regime solving the incentive inconsistency problem," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(3), pages 603-619, August.
    11. Raith, Michael, 1996. "Spatial retail markets with commuting consumers," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 447-463, June.
    12. Song Zhang & Mark Duijn & Arno J. Vlist, 2023. "Tenant Mix and Retail Rents in High Street Shopping Districts," The Journal of Real Estate Finance and Economics, Springer, vol. 67(1), pages 72-107, July.

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