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Spatial retail markets

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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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    References listed on IDEAS

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    1. Cainarca, Gian Carlo & Colombo, Massimo G. & Mariotti, Sergio, 1989. "An evolutionary pattern of innovation diffusion. The case of flexible automation," Research Policy, Elsevier, vol. 18(2), pages 59-86, April.
    2. Shrieves, Ronald E, 1978. "Market Structure and Innovation: A New Perspective," Journal of Industrial Economics, Wiley Blackwell, vol. 26(4), pages 329-347, June.
    3. Carlsson, Bo, 1984. "The development and use of machine tools in historical perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 5(1), pages 91-114, March.
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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, pages 353-369.
    2. 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.
    3. Raith, Michael, 1996. "Spatial retail markets with commuting consumers," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 447-463, June.
    4. 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.
    5. 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.

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