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The Law of Retail Gravitation: Insights from Another Law

Author

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  • J B Parr

    (Department of Urban Studies, University of Glasgow, Glasgow G12 8RS, Scotland)

Abstract

The law of retail gravitation (LRG) and the economic law of market areas (LMA) both seek to define the market-area boundary between two competing centres. Each law is reviewed and then characterised in terms of the principal dimensions of the market-area boundary. It is shown that under certain conditions the two laws correspond exactly, so that the LMA is able to lend some economic support for the LRG. If, however, approximate correspondence between the laws is permitted, this support is considerably greater. The two laws are also viewed within the broader framework of an hierarchically structured urban system. Exact correspondence between the laws is again possible under particular circumstances, but the descriptive capacity of the LMA is greatly increased when approximation is allowed. Finally, consideration is given to the possibility of modifying the LMA in order to take account of the effects of nonprice competition.

Suggested Citation

  • J B Parr, 1997. "The Law of Retail Gravitation: Insights from Another Law," Environment and Planning A, , vol. 29(8), pages 1477-1492, August.
    • Handle: RePEc:sae:envira:v:29:y:1997:i:8:p:1477-1492
    DOI: 10.1068/a291477
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    References listed on IDEAS

    as
    1. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521315647, October.
    2. Robert F. Hebert, 1972. "A Note on the Historical Development of the Economic Law of Market Areas," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(4), pages 563-571.
    3. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521305525, October.
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