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Disaggregate Modelling and Decisions of Retail Firms: A Case Study of Clothing Retailers

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  • E J Miller

    (Joint Program in Transportation, University of Toronto, Toronto, Ontario, Canada)

  • S R Lerman

    (Department of Civil Engineering, Massachusetts Institute of Technology, Cambridge, Massachusetts, USA)

Abstract

A general theory of the decisions made by retail firms with regard to location, number of employees, and the amount of floor space rented is reviewed. This theory, originally developed by the authors in a previous paper, leads to a multinomial probit disaggregate choice model with some of the attributes endogenously determined. This paper is a sequel to that earlier work. The application of this model to clothing retailers in the Boston Metropolitan area is described, and results of models estimated from a survey of such stores are reported. Some specific inferences regarding the behavior of clothing retailers are drawn, and more general conclusions regarding the usefulness of the theory are discussed.

Suggested Citation

  • E J Miller & S R Lerman, 1981. "Disaggregate Modelling and Decisions of Retail Firms: A Case Study of Clothing Retailers," Environment and Planning A, , vol. 13(6), pages 729-746, June.
    • Handle: RePEc:sae:envira:v:13:y:1981:i:6:p:729-746
    DOI: 10.1068/a130729
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    References listed on IDEAS

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    1. Westin, Richard B. & Gillen, David W., 1978. "Parking location and transit demand : A case study of endogenous attributes in disaggregate mode choice models," Journal of Econometrics, Elsevier, vol. 8(1), pages 75-101, August.
    2. Hausman, Jerry A & Wise, David A, 1978. "A Conditional Probit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Econometrica, Econometric Society, vol. 46(2), pages 403-426, March.
    3. Duncan, Gregory M, 1980. "Formulation and Statistical Analysis of the Mixed, Continuous/Discrete Dependent Variable Model in Classical Production Theory," Econometrica, Econometric Society, vol. 48(4), pages 839-852, May.
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    Cited by:

    1. 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.
    2. Bunch, David S. & Kitamura, Ryuichi, 1991. "Probit Model Estimation Revisited: Trinomial Models of Household Car Ownership," University of California Transportation Center, Working Papers qt2hr8d4bs, University of California Transportation Center.

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