Aggregation of retail stores
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Pablo Jensen; Jean Boisson; HernΓ‘n Larralde
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Article
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2005
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Elsevier Science
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English
β 524 KB
We propose a simple model to understand the economic factors that induce aggregation of some businesses over small geographical regions. The model incorporates price competition with neighboring stores, transportation costs and the satisfaction probability of finding the desired product. We show tha