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A model of retail location, scale, and intensity

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  • E J Miller
  • S R Lerman

Abstract

A model of retail activity which focuses on firm location, firm size,and intensity of capital use is developed. This model has discrete and continuous dependent variables. Owing to its nonlinearity, a number of approximation techniques to facilitate parameter estimation are explored. The two promising approaches require making floor space a discrete variable. The first method places restrictions on the structure of unobserved variables in the discrete choice of floor space and location. The second approach uses the multinomial probit model of discrete choice. The latter model is more general than the former but will require the modification of existing probit estimation procedures.

Suggested Citation

  • E J Miller & S R Lerman, 1979. "A model of retail location, scale, and intensity," Environment and Planning A, Pion Ltd, London, vol. 11(2), pages 177-192, February.
  • Handle: RePEc:pio:envira:v:11:y:1979:i:2:p:177-192
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    Cited by:

    1. Kingsley E. Haynes & Stewart Fotheringham, 1990. "The Impact of Space on the Application Of Discrete Choice Models," The Review of Regional Studies, Southern Regional Science Association, vol. 20(2), pages 39-49, Spring.
    2. Oppewal, Harmen & Louviere, Jordan J. & Timmermans, Harry J. P., 2000. "Modifying Conjoint Methods to Model Managers' Reactions to Business Environmental Trends: An Application to Modeling Retailer Reactions to Sales Trends," Journal of Business Research, Elsevier, vol. 50(3), pages 245-257, December.

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