Maximum Or Minimum Differentiation? Location Patterns Of Retail Outlets

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Maximum Or Minimum Differentiation? Location Patterns Of Retail Outlets

Author Info

Janet S. Netz
Beck A. Taylor

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Beck A. Taylor

Abstract

We empirically test implications from location theory using the location of Los Angeles-area gasoline stations in physical space and in the space of product attributes. We consider the effect of demand patterns, entry costs, and several proxies for competition on the tendency for a gasoline station to be physically located more or less closely to its competitors. Using an estimation procedure that controls for spatial autocorrelation and spatial autoregression, and controlling for market characteristics and nonspatial product attributes, we find considerable evidence that firms locate their stations in an attempt to spatially differentiate their product as market competition increases. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 84 (2002)
Issue (Month): 1 (February)
Pages: 162-175
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Handle: RePEc:tpr:restat:v:84:y:2002:i:1:p:162-175

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Atsushi Yoshida & Tatsuhiro Shichijo, 2004. "Spatial Clustering of Housing Construction in the Tokyo Metropolitan Area: An Application of Spatially Clustered Fixed-Effects and Spatially Correlated Random-Effects Models," Econometric Society 2004 Australasian Meetings 266, Econometric Society. [Downloadable!]
Justine S. Hastings, 2004. "Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California," American Economic Review, American Economic Association, vol. 94(1), pages 317-328, March. [Downloadable!]
Victor Aguirregabiria & Pedro Mira, 2004. "Sequential Estimation Of Dynamic Discrete Games," Working Papers wp2004_0413, CEMFI. [Downloadable!]
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- Victor Aguirregabiria & Pedro Mira, 2004. "Sequential Estimation of Dynamic Discrete Games," Industrial Organization 0406006, EconWPA. [Downloadable!]
- Victor Aguirregabiria & Pedro Mira, 2007. "Sequential Estimation of Dynamic Discrete Games," Econometrica, Econometric Society, vol. 75(1), pages 1-53, 01. [Downloadable!] (restricted)
Hayley H. Chouinard & Jeffrey M. Perloff, 2007. "Gasoline Price Differences: Taxes, Pollution Regulations, Mergers, Market Power, and Market Conditions," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(1). [Downloadable!]
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- Hayley Chouinard & Jeffrey Perloff, 2002. "Gasoline Price Differences: Taxes, Pollution Regulations, Mergers, Market Power, and Market Conditions," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 951, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2006. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," NBER Working Papers 12646, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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- Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2005. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," Discussion Papers Series, Department of Economics, Tufts University 0523, Department of Economics, Tufts University. [Downloadable!]
- Darlene C. Chisolm & Margaret McMillan & George Norman, 2007. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," Discussion Papers Series, Department of Economics, Tufts University 0713, Department of Economics, Tufts University. [Downloadable!]
Andrew Eckert & Douglas West, 2006. "Exit and Upgrading in Response to Entry: The Case of Gasoline Retailing," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 13(3), pages 351-372, November. [Downloadable!] (restricted)

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