Huang A, Levinson D, 2011, "Why retailers cluster: an agent model of location choice on supply chains" Environment and Planning B: Planning and Design 38(1) 82 – 94
Download citation data in RIS format
Why retailers cluster: an agent model of location choice on supply chains
Arthur Huang, David Levinson
Received 11 February 2009; in revised form 27 January 2010; published online 20 September 2010
Abstract. 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 noncooperative 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 arise 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.
This article has supplementary online material: Colour figures
Full-text PDF size: 1347 Kb
References 46 references, 26 with DOI links ()
Your computer (IP address: 188.8.131.52) has not been recognised as being on a network authorised to view the full text or references of this article. If you are a member of a university library that has a subscription to the journal, please contact your serials librarian (subscriptions information).