Measuring the effect of transportation infrastructure on retail firm co-location patterns. (February 2016)

• Record Type: Journal Article
• Authors: Nilsson, Isabelle M.; Smirnov, Oleg A.
• Is Part Of: Journal of transport geography. Volume 51(2016)
• Page Start: 110
• Page End: 118
• Publication Date: 2016-02
• Subjects: Transportation infrastructure -- Retail location -- Spatial statistics -- Co-location -- Strategic interactions; Transportation -- Periodicals; Telecommunication -- Periodicals; Transport -- Périodiques; Télécommunications -- Périodiques; Telecommunication; Transportation; Periodicals; 388
• DOI: 10.1016/j.jtrangeo.2015.12.002
• Languages: English
• ISSNs: 0966-6923

Abstract

Abstract: This paper studies the effects of transportation infrastructure on the location behavior of competing retail firms. First, in a game theoretic framework that describes the location choices made by retailers with respect to each other, the connection between relative firm location and transportation demand is outlined. Second, a multivariate point pattern statistic based on this theoretical framework is applied to location patterns of fast food outlets to measure the effects that major road infrastructure has on firm location behavior in this sector. The results suggest that transportation infrastructure affects the location behavior of firms with respect to their location in relation to their competitors. Access to important transportation infrastructure induces competing outlets to locate next to each other—a tendency not necessarily observed among outlets without such access. Theoretically, this does not only affect economic outcomes, but also travel demand and consumer accessibility. The findings from this study stress the importance of accounting for how transportation infrastructure changes the location behavior of firms in travel demand frameworks. Highlights: We study how transport infrastructure affects location choices made by retailers. We focus on how competing retail outlets locate in relation to each other. To quantify location behaviors, a new multivariate spatial statistic is applied. Transportation infrastructure induces competitors to locate next to each other. Detected tendencies suggest implications for travel demand and accessibility.