Measuring the effect of transportation infrastructure on retail firm co-location patterns |
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| Institution: | 1. Department of Geography and Earth Sciences, University of North Carolina at Charlotte, 9201 University City Blvd, Charlotte, NC 28223, United States;2. Department of Economics, Department of Geography and Planning, University of Toledo, 2801 W. Bancroft St, Toledo, OH 43606, United States;1. Department of Geography and Resource Management, The Chinese University of Hong Kong, Hong Kong, China;2. Institute of Space and Earth Information Science, The Chinese University of Hong Kong, Hong Kong, China;3. Department of Economics, The Chinese University of Hong Kong, Hong Kong, China;1. Institute of Public Goods and Policy (IPP), CSIC – Spanish National Research Council, c/Albasanz 26/28, 28037 Madrid, Spain;2. DAStU-Politecnico di Milano, Via Bonardi 3, 20133 Milan, Italy;1. City and Regional Planning, Austin E. Knowlton School of Architecture, The Ohio State University, 295 Knowlton Hall, 275 West Woodruff Ave., Columbus, OH 43210, United States;2. Schar School of Policy and Government, George Mason University, 3351 Fairfax Drive, MS 3B1, Arlington, VA 22201, United States |
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| 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. |
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