IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v51y2016icp110-118.html
   My bibliography  Save this article

Measuring the effect of transportation infrastructure on retail firm co-location patterns

Author

Listed:
  • Nilsson, Isabelle M.
  • Smirnov, Oleg A.

Abstract

This paper studies the effects of transportation infrastructure on the location behavior of competing retail firms. First, in a game theoretic framework that describes the location choices made by retailers with respect to each other, the connection between relative firm location and transportation demand is outlined. Second, a multivariate point pattern statistic based on this theoretical framework is applied to location patterns of fast food outlets to measure the effects that major road infrastructure has on firm location behavior in this sector.

Suggested Citation

  • Nilsson, Isabelle M. & Smirnov, Oleg A., 2016. "Measuring the effect of transportation infrastructure on retail firm co-location patterns," Journal of Transport Geography, Elsevier, vol. 51(C), pages 110-118.
    • Handle: RePEc:eee:jotrge:v:51:y:2016:i:c:p:110-118
    DOI: 10.1016/j.jtrangeo.2015.12.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692315002227
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2015.12.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gibbons, Stephen & Lyytikäinen, Teemu & Overman, Henry G. & Sanchis-Guarner, Rosa, 2019. "New road infrastructure: The effects on firms," Journal of Urban Economics, Elsevier, vol. 110(C), pages 35-50.
    2. Jeffrey H. Fischer & Joseph E. Harrington Jr., 1996. "Product Variety and Firm Agglomeration," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 281-309, Summer.
    3. Austin, S.B. & Melly, S.J. & Sanchez, B.N. & Patel, A. & Buka, S. & Gortmaker, S.L., 2005. "Clustering of fast-food restaurants around schools: A novel application of spatial statistics to the study of food environments," American Journal of Public Health, American Public Health Association, vol. 95(9), pages 1575-1581.
    4. Irmen, Andreas & Thisse, Jacques-Francois, 1998. "Competition in Multi-characteristics Spaces: Hotelling Was Almost Right," Journal of Economic Theory, Elsevier, vol. 78(1), pages 76-102, January.
    5. Love, Harold G., 1972. "Fast Food Store Location Factors: A Comparison With Grocery Store Location Factors," Journal of Food Distribution Research, Food Distribution Research Society, vol. 3(1), pages 1-4, July.
    6. Chandra, Amitabh & Thompson, Eric, 2000. "Does public infrastructure affect economic activity?: Evidence from the rural interstate highway system," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 457-490, July.
    7. Peter Davis, 2006. "Spatial competition in retail markets: movie theaters," RAND Journal of Economics, The RAND Corporation, vol. 37(4), pages 964-982, December.
    8. Janet S. Netz & Beck A. Taylor, 2002. "Maximum Or Minimum Differentiation? Location Patterns Of Retail Outlets," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 162-175, February.
    9. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 341-363, May.
    10. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    11. Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
    12. Michael J. Hicks, 2006. "Transportation and infrastructure, retail clustering, and local public finance: evidence from Wal-Mart's expansion," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 100-114.
    13. Picone, Gabriel A. & Ridley, David B. & Zandbergen, Paul A., 2009. "Distance decreases with differentiation: Strategic agglomeration by retailers," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 463-473, May.
    14. Dudey, Marc, 1990. "Competition by Choice: The Effect of Consumer Search on Firm Location Decisions," American Economic Review, American Economic Association, vol. 80(5), pages 1092-1104, December.
    15. Eric Marcon & Florence Puech, 2010. "Measures of the geographic concentration of industries: improving distance-based methods," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 745-762, September.
    16. Peter Davis, 2006. "Spatial competition in retail markets: movie theaters," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 964-982, December.
    17. Raphael Thomadsen, 2007. "Product Positioning and Competition: The Role of Location in the Fast Food Industry," Marketing Science, INFORMS, vol. 26(6), pages 792-804, 11-12.
    18. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
    19. Panle Jia, 2008. "What Happens When Wal-Mart Comes to Town: An Empirical Analysis of the Discount Retailing Industry," Econometrica, Econometric Society, vol. 76(6), pages 1263-1316, November.
    20. Antonio Páez & Ruben Gertes Mercado & Steven Farber & Catherine Morency & Matthew Roorda, 2010. "Relative Accessibility Deprivation Indicators for Urban Settings: Definitions and Application to Food Deserts in Montreal," Urban Studies, Urban Studies Journal Limited, vol. 47(7), pages 1415-1438, June.
    21. Simon P. Anderson & André De Palma, 1988. "Spatial Price Discrimination with Heterogeneous Products," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(4), pages 573-592.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José Roberto Díaz-Reza & Jorge Luis García-Alcaraz & Valeria Martínez-Loya & Liliana Avelar-Sosa & Emilio Jiménez-Macías & Julio Blanco-Fernández, 2018. "Impact of Infrastructure and Production Processes on Rioja Wine Supply Chain Performance," Sustainability, MDPI, vol. 10(1), pages 1-14, January.
    2. Kim, Daehwan & Seo, Ducksu & Kwon, Youngsang, 2021. "Novel trends in SNS customers in food and beverage patronage: An empirical study of metropolitan cities in South Korea," Land Use Policy, Elsevier, vol. 101(C).
    3. Haining Jiang & Wei Xu & Wenzhong Zhang, 2018. "Transportation Accessibility and Location Choice of Japanese-Funded Electronic Information Manufacturing Firms in Shanghai," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    4. Champagne, Marie-Pier & Dubé, Jean, 2023. "The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review," Transport Policy, Elsevier, vol. 131(C), pages 139-155.
    5. Junseo Bae & Kunhee Choi, 2021. "A land-use clustering approach to capturing the level-of-service of large urban corridors: A case study in downtown Los Angeles," Environment and Planning B, , vol. 48(7), pages 2093-2109, September.
    6. Liu, Chengliang & Duan, Dezhong, 2020. "Spatial inequality of bus transit dependence on urban streets and its relationships with socioeconomic intensities: A tale of two megacities in China," Journal of Transport Geography, Elsevier, vol. 86(C).
    7. Ahmed, Usman & Hawkins, Jason & Roorda, Matthew J., 2022. "Establishment location choice model considering intra-firm interactions," Journal of Transport Geography, Elsevier, vol. 102(C).
    8. Giulio Grossi & Marco Mariani & Alessandra Mattei & Patrizia Lattarulo & Ozge Oner, 2020. "Direct and spillover effects of a new tramway line on the commercial vitality of peripheral streets. A synthetic-control approach," Papers 2004.05027, arXiv.org, revised Nov 2023.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isabelle M. Nilsson & Oleg A. Smirnov, 2017. "Clustering vs. relative location: Measuring spatial interaction between retail outlets," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 721-741, November.
    2. Yi Deng & Gabriel Picone, 2019. "An empirical analysis of entry and location decisions by bars and liquor stores," Empirical Economics, Springer, vol. 57(5), pages 1751-1782, November.
    3. Picone, Gabriel A. & Ridley, David B. & Zandbergen, Paul A., 2009. "Distance decreases with differentiation: Strategic agglomeration by retailers," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 463-473, May.
    4. Yi Deng & Gabriel Picone, 2013. "Strategic Clustering and Competition by Alcohol Retailers: An Emperical Anlysis of Entry and Location Decisions," Working Papers 1013, University of South Florida, Department of Economics.
    5. Darlene Chisholm & Margaret McMillan & George Norman, 2010. "Product differentiation and film-programming choice: do first-run movie theatres show the same films?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(2), pages 131-145, May.
    6. Lijesen, M.G., 2010. "Empirical applications of spatial competition; an interpretative literature review," Serie Research Memoranda 0006, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    7. Koster, Hans R.A. & Pasidis, Ilias & van Ommeren, Jos, 2019. "Shopping externalities and retail concentration: Evidence from dutch shopping streets," Journal of Urban Economics, Elsevier, vol. 114(C).
    8. Amit Pazgal & David Soberman & Raphael Thomadsen, 2022. "Consumer informedness: A key driver of differentiation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(2), pages 356-368, April.
    9. Li Gan & Manuel A. Hernandez, 2013. "Making Friends with Your Neighbors? Agglomeration and Tacit Collusion in The Lodging Industry," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 1002-1017, July.
    10. Rosario Silva, 2016. "Competition and demand effects of geographic distance to rivals," The Service Industries Journal, Taylor & Francis Journals, vol. 36(1-2), pages 37-57, January.
    11. Ahmed, Usman & Hawkins, Jason & Roorda, Matthew J., 2022. "Establishment location choice model considering intra-firm interactions," Journal of Transport Geography, Elsevier, vol. 102(C).
    12. Schuetz, Jenny, 2015. "Why are Walmart and Target Next-Door neighbors?," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 38-48.
    13. Elizalde, Javier, 2013. "Competition in multiple characteristics: An empirical test of location equilibrium," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 938-950.
    14. Cosman, Jacob & Schiff, Nathan, 2019. "Delivery in the city: evidence on monopolistic competition from New York restaurants," MPRA Paper 96617, University Library of Munich, Germany.
    15. O. Cem Ozturk & Sriram Venkataraman & Pradeep K. Chintagunta, 2016. "Price Reactions to Rivals’ Local Channel Exits," Marketing Science, INFORMS, vol. 35(4), pages 588-604, July.
    16. Aurélie Bonein & Stéphane Turolla, 2023. "Spatial competition with demand uncertainty: A laboratory experiment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 32(4), pages 906-939, October.
    17. Sumon Datta & K. Sudhir, 2023. "The Agglomeration-Differentiation Tradeoff in Spatial Location Choice," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 10(1), pages 1-25, December.
    18. Yogesh V. Joshi & David J. Reibstein & Z. John Zhang, 2016. "Turf Wars: Product Line Strategies in Competitive Markets," Marketing Science, INFORMS, vol. 35(1), pages 128-141, January.
    19. Gupta, Barnali & Lai, Fu-Chuan & Pal, Debashis & Sarkar, Jyotirmoy & Yu, Chia-Ming, 2004. "Where to locate in a circular city?," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 759-782, June.
    20. Darlene Chisholm & George Norman, 2012. "Spatial competition and market share: an application to motion pictures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(3), pages 207-225, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:51:y:2016:i:c:p:110-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.