Clustering vs. relative location: Measuring spatial interaction between retail outlets. (5th April 2016)

• Record Type: Journal Article
• Authors: Nilsson, Isabelle M.; Smirnov, Oleg A.
• Is Part Of: Papers in regional science. Volume 96:Number 4(2017)
• Page Start: 721
• Page End: 741
• Publication Date: 2016-04-05
• Subjects: Multivariate spatial statistics -- point patterns -- spatial association -- retail location -- strategic interactions; Regional planning -- Periodicals; City planning -- Periodicals; Urbanization -- Periodicals; Economic geography -- Periodicals; 307.12
• DOI: 10.1111/pirs.12219
• Languages: English
• ISSNs: 1056-8190

Abstract

Abstract: This paper presents a new multivariate spatial statistic developed to identify different interaction patterns between competing retail outlets. In order to define when two outlets are located relatively close to each other, a topological proximity criterion is suggested. Asymptotic properties of the new statistic are derived analytically and finite sample properties are obtained through Monte Carlo simulations. Various simulation experiments confirm that the statistic is robust and that it can distinguish pairwise categorical association from clustering in the joint population. To demonstrate its usefulness, the statistic is applied to competing retail chains in two retail sectors.