IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1612.06441.html
   My bibliography  Save this paper

Quantifying Retail Agglomeration using Diverse Spatial Data

Author

Listed:
  • Duccio Piovani
  • Vassilis Zachariadis
  • Michael Batty

Abstract

Newly available data on the spatial distribution of retail activities in cities makes it possible to build models formalized at the level of the single retailer. Current models tackle consumer location choices at an aggregate level and the opportunity new data offers for modeling at the retail unit level lacks a theoretical framework. The model we present here helps to address these issues. It is a particular case of the Cross-Nested Logit model, based on random utility theory built with the idea of quantifying the role of floor space and agglomeration in retail location choice. We test this model on the city of London: the results are consistent with a super linear scaling of a retailer's attractiveness with its floor space, and with an agglomeration effect approximated as the total retail floorspace within a $325m$ radius from each shop.

Suggested Citation

  • Duccio Piovani & Vassilis Zachariadis & Michael Batty, 2016. "Quantifying Retail Agglomeration using Diverse Spatial Data," Papers 1612.06441, arXiv.org.
    • Handle: RePEc:arx:papers:1612.06441
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1612.06441
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McFadden, Daniel, 1980. "Econometric Models for Probabilistic Choice among Products," The Journal of Business, University of Chicago Press, vol. 53(3), pages 13-29, July.
    2. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Daniel McFadden, 2001. "Economic Choices," American Economic Review, American Economic Association, vol. 91(3), pages 351-378, June.
    5. Alessandro Fiasconaro & Emanuele Strano & Vincenzo Nicosia & Sergio Porta & Vito Latora, 2016. "Spatio-temporal analysis of micro economic activities in Rome reveals patterns of mixed-use urban evolution," Papers 1602.08374, arXiv.org.
    6. Michel Bierlaire, 2006. "A theoretical analysis of the cross-nested logit model," Annals of Operations Research, Springer, vol. 144(1), pages 287-300, April.
    7. Wen, Chieh-Hua & Koppelman, Frank S., 2001. "The generalized nested logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 627-641, August.
    8. David L. Huff, 1966. "A Programmed Solution for Approximating an Optimum Retail Location," Land Economics, University of Wisconsin Press, vol. 42(3), pages 293-303.
    9. Teller, Christoph & Reutterer, Thomas, 2008. "The evolving concept of retail attractiveness: What makes retail agglomerations attractive when customers shop at them?," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 127-143.
    10. Krugman, Paul, 1998. "What's New about the New Economic Geography?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 7-17, Summer.
    11. Luis Bettencourt & Geoffrey West, 2010. "A unified theory of urban living," Nature, Nature, vol. 467(7318), pages 912-913, October.
    12. Alessandro Fiasconaro & Emanuele Strano & Vincenzo Nicosia & Sergio Porta & Vito Latora, 2016. "Spatio-Temporal Analysis of Micro Economic Activities in Rome Reveals Patterns of Mixed-Use Urban Evolution," PLOS ONE, Public Library of Science, vol. 11(3), pages 1-15, March.
    13. William Alonso, 1960. "A Theory Of The Urban Land Market," Papers in Regional Science, Wiley Blackwell, vol. 6(1), pages 149-157, January.
    Full references (including those not matched with items on IDEAS)

    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. Ademir Rocha & Fernando Perobelli, 2020. "Spatial distribution of logistics services in Brazil: A potential market analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(1), pages 185-217, February.
    2. Helena Marques, 2008. "Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 364-408, April.
    3. Kurt DeMaagd & Scott Moore, 2007. "Computational modeling of city formation," Computational Economics, Springer;Society for Computational Economics, vol. 30(1), pages 41-56, August.
    4. Lammers, Konrad & Stiller, Silvia, 2000. "Regionalpolitische Implikationen der neuen ökonomischen Geographie," HWWA Discussion Papers 85, Hamburg Institute of International Economics (HWWA).
    5. Tinessa, Fiore & Marzano, Vittorio & Papola, Andrea, 2020. "Mixing distributions of tastes with a Combination of Nested Logit (CoNL) kernel: Formulation and performance analysis," Transportation Research Part B: Methodological, Elsevier, vol. 141(C), pages 1-23.
    6. Wieland, Thomas, 2014. "Räumliches Einkaufsverhalten und Standortpolitik im Einzelhandel unter Berücksichtigung von Agglomerationseffekten: Theoretische Erklärungsansätze, modellanalytische Zugänge und eine empirisch-ökonome," MPRA Paper 77163, University Library of Munich, Germany.
    7. Alejandro Díaz-Bautista, 2003. "Convergence And Economic Growth Considering Human Capital And R&D Spillovers," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 2(2), pages 127-143, Junio 200.
    8. Kristian Behrens & Frédéric Robert‐Nicoud, 2009. "Krugman's Papers in Regional Science: The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well‐deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    9. Ouyang, Puman & Zhang, Teng & Dong, Yan, 2015. "Market potential, firm exports and profit: Which market do the Chinese firms profit from?," China Economic Review, Elsevier, vol. 34(C), pages 94-108.
    10. Stiller, Silvia, 2000. "European Regional Policy In The Light Of The New Economic Geography," ERSA conference papers ersa00p298, European Regional Science Association.
    11. Breitmoser, Yves, 2018. "The Axiomatic Foundation of Logit," Rationality and Competition Discussion Paper Series 78, CRC TRR 190 Rationality and Competition.
    12. Alessia Ruggiero, 2005. "Paul Krugman and the New Economic Geography - assesment in the light of the dynamics of a “real world” local system of firms," ERSA conference papers ersa05p273, European Regional Science Association.
    13. Ramírez Grajeda, Mauricio & de León Arias, Adrián, 2009. "Spatial implications of international trade under the new economic geography approach," MPRA Paper 18076, University Library of Munich, Germany.
    14. Duccio Piovani & Carlos Molinero & Alan Wilson, 2017. "Urban retail location: Insights from percolation theory and spatial interaction modeling," PLOS ONE, Public Library of Science, vol. 12(10), pages 1-13, October.
    15. Deeken, Tim & Ott, Ingrid, 2014. "Integration as a spatial institution: Implications for agglomeration and growth," Working Paper Series in Economics 59, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    16. Alejandro Diaz-Bautista, 2005. "Convergence and Economic Growth considering Human Capital and R&D Spillovers Convergencia y Crecimiento Economico en Mexico considerando al Capital Humano y derrames en Investigacion y Desarrollo," Urban/Regional 0506012, University Library of Munich, Germany.
    17. Masashige Hamano & Pierre M. Picard, 2017. "Extensive and intensive margins and exchange rate regimes," Canadian Journal of Economics, Canadian Economics Association, vol. 50(3), pages 804-837, August.
    18. repec:hal:spmain:info:hdl:2441/6493 is not listed on IDEAS
    19. Redding, Stephen J. & Weinstein, David E., 2016. "A unified approach to estimating demand and welfare," LSE Research Online Documents on Economics 67681, London School of Economics and Political Science, LSE Library.
    20. Paleti, Rajesh, 2018. "Generalized multinomial probit Model: Accommodating constrained random parameters," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 248-262.
    21. Thorsten Wichmann, 1996. "The "Information Highway" and the Location of Economic Activity," Berlecon Research Papers 0003, Berlecon Research.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:arx:papers:1612.06441. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.