Multipurpose Shopping and the Location of Retail Firms

Sara McLafferty · Avijit Ghosh

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Regional Economics and Spatial Analysis Merger and Competition Analysis Consumer Market Behavior and Pricing

Abstract

This paper investigates the effects of multipurpose shopping on spatial competition among retail firms. Multipurpose shopping leads to a dispersion of competing firms even in Hotelling‐type scenarios. The degree of dispersion depends on individual propensities for multipurpose shopping which are determined by the relative costs, demands, and prices for various goods.

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1929Stability in Competition 1990Stability in Competition 1975The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition 1977Sequential Location among Firms with Foresight 1982An Economic Theory of Central Places 1982Comment—Subjective Probability and the Theory of Games: Comments on Kadane and Larkey's Paper 1968LOCATIONAL STRATEGIES FOR COMPETITIVE SYSTEMS†1984A Location Allocation Model for Facility Planning in a Competitive Environment

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