Retail Location Choice with Complementary Goods: An Agent-Based Model
نویسندگان
چکیده
This paper models the emergence of retail clusters on a supply chain network comprised of suppliers, retailers, and consumers. Firstly, an agent-based model is proposed to investigate retail location distribution in a market of two complementary goods. The methodology controls for supplier locales and unit sales prices of retailers and suppliers, and a consumer’s willingness to patronize a retailer depends on the total travel distance of buying both goods. On a circle comprised of discrete locations, retailers play a non-cooperative game of location choice to maximize individual profits. Our findings suggest that the probability distribution of the number of clusters in equilibrium follows power law and that hierarchical distribution patterns are much more likely to occur than the spread-out ones. In addition, retailers of complementary goods tend to co-locate at supplier locales. Sensitivity tests on the number of retailers are also performed. Secondly, based on the County Business Patterns (CBP) data of Minneapolis-St. Paul from US Census 2000 database, we find that the number of clothing stores and the distribution of food stores at the zip code level follows power-law distribution.
منابع مشابه
An Agent-based Model of Retail Location Choice with Complementary Goods
This paper examines the emergence of retail clusters on a supply chain network comprised of suppliers, retailers, and consumers. An agent-based model is proposed to investigate retail location distribution in a market of two complementary goods. The methodology controls for supplier locales and unit sales prices of retailers and suppliers; a consumer’s willingness to patronize a retailer depend...
متن کاملWhy retailers cluster: An agent model of location choice on supply chains
This paper investigates the emergence of retail clusters on supply chains comprised of suppliers, retailers, and consumers. An agent-based model is employed to study retail location choice in a market of homogeneous goods and a market of complementary goods. On a circle comprised of discrete locales, retailers play a non-cooperative game by choosing locales to maximize profits which are impacte...
متن کاملThe User Manual for the model of Clustered Locations of Urban Services, Transport, and Economic Resources (CLUSTER)
The Clustered Locations of Urban Services, Transport, and Economic Resources Program (CLUSTER) is an agent-based prototype on modeling retail location choice on supply chains consisting of consumers, retailers, and suppliers. Introduced in Huang and Levinson (2011), this model aims to investigate the effects of transportation cost, consumers’ travel behavior, and suppliers’ locations on retail ...
متن کاملDistribution channel choice in a market with complementary goods
In many market situations such as in shopping centers, grocery stores, industrial-goods distributors, and ‘full-line manufacturers’ we see the marketing and distribution of complementary products. Sometimes the distribution function is handled by the manufacturer himself, and sometimes it is spun off to an independent distributor or middleman. This paper presents an economics-based model which ...
متن کامل