Why retailers cluster: An agent model of location choice on supply chains

Loading...
Thumbnail Image

Persistent link to this item

Statistics
View Statistics

Journal Title

Journal ISSN

Volume Title

Title

Why retailers cluster: An agent model of location choice on supply chains

Published Date

2011

Publisher

Pion

Type

Article

Abstract

This paper investigates the emergence of retail clusters on supply chains comprised of suppliers, retailers, and consumers. Agent-based models are 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 impacted by their distance to consumers and to suppliers. Our findings disclose that in a market of homogeneous products symmetric distributions of retail clusters rise out of competition between individual retailers; average cluster density and cluster size change dynamically as retailers enter the market. In a market of two complementary goods, multiple equilibria of retail distributions are found to be common; a single cluster of retailers has the highest probability to emerge. Overall, our results show that retail clusters emerge from the balance between retailers’ proximity to their customers, their competitors, their complements, and their suppliers.

Description

Related to

Replaces

License

Series/Report Number

Funding information

TechPlan

Isbn identifier

Doi identifier

http://dx.doi.org/doi:10.1068/b36018

Previously Published Citation

Huang, Arthur and David Levinson (2011) Why retailers cluster: An agent model of location choice on supply chains. Environment and Planning b 38(1) 82 – 94.

Other identifiers

Suggested citation

Huang, Arthur; Levinson, David M. (2011). Why retailers cluster: An agent model of location choice on supply chains. Retrieved from the University Digital Conservancy, http://dx.doi.org/doi:10.1068/b36018.

Content distributed via the University Digital Conservancy may be subject to additional license and use restrictions applied by the depositor. By using these files, users agree to the Terms of Use. Materials in the UDC may contain content that is disturbing and/or harmful. For more information, please see our statement on harmful content in digital repositories.