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Cannibalization in a Competitive Environment


  • Tammy Drezner

    (Department of Information Systems and Decision Sciences, Steven G. Mihaylo College of Business and Economics, California State University-Fullerton, Fullerton, CA, USA,


In this article, cannibalization and its effects on location decisions in a competitive retail environment is investigated. The authors analyze maximizing market share while minimizing cannibalization using the gravity (Huff) model. The efficient frontier according to these two noncompatible objectives is constructed and illustrated on an example problem. An easy to implement analysis that provides insight into management decisions is provided. To illustrate the ease of implementing the model using Excel, a description of the spreadsheet along with the Visual Basic for Applications (VBA) code are provided.

Suggested Citation

  • Tammy Drezner, 2011. "Cannibalization in a Competitive Environment," International Regional Science Review, , vol. 34(3), pages 306-322, July.
  • Handle: RePEc:sae:inrsre:v:34:y:2011:i:3:p:306-322

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    References listed on IDEAS

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    7. Borjas, George J., 1998. "To Ghetto or Not to Ghetto: Ethnicity and Residential Segregation," Journal of Urban Economics, Elsevier, vol. 44(2), pages 228-253, September.
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    11. D A Griffith & K G Jones, 1980. "Explorations into the Relationship between Spatial Structure and Spatial Interaction," Environment and Planning A, , vol. 12(2), pages 187-201, February.
    12. Molho, Ian, 1986. "Theories of Migration: A Review," Scottish Journal of Political Economy, Scottish Economic Society, vol. 33(4), pages 396-419, November.
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    1. repec:spr:annopr:v:246:y:2016:i:1:d:10.1007_s10479-014-1676-5 is not listed on IDEAS
    2. repec:spr:annopr:v:246:y:2016:i:1:d:10.1007_s10479-014-1699-y is not listed on IDEAS


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