The Role of Spatial Demand on Outlet Location and Pricing

2009 ◽  
Vol 46 (2) ◽  
pp. 260-278 ◽  
Author(s):  
Jason A. Duan ◽  
Carl F. Mela
Keyword(s):  
Capacity Constraints ◽  
Spatial Effects ◽  
Spatial Decay ◽  
Spatial Covariance ◽  
Latent Demand ◽  
Capacity Constrained ◽  
Demand Patterns ◽  
Spatial Demand ◽  
Equilibrium Effect

In this article, the authors consider the problem of outlet pricing and location in the context of unobserved spatial demand. The analysis constitutes a scenario in which capacity-constrained firms set prices conditional on their location, demand, and costs. This enables firms to develop maps of latent demand patterns across the market in which they compete. The analysis further suggests locations for additional outlets and the resultant equilibrium effect on profits and prices. Using Bayesian spatial statistics, the authors apply their model to seven years of data on apartment location and prices in Roanoke, Va. They find that spatial covariation in demand is material in outlet choice; the 95% spatial decay in demand extends 3.6 miles in a region that measures slightly more than 9.5 miles. They also find that capacity constraints can cost complexes upward of $100 per apartment. As they predict, price elasticities and costs are biased downward when spatial covariance in demand is ignored. Costs are biased upward when capacity constraints are ignored. Using the analysis to suggest locations for entry, the authors find that properly accounting for spatial effects and capacity constraints leads to an entry recommendation that improves profitability by 66% over a model that ignores these effects.

From Assortative to Dissortative Networks: The Role of Capacity Constraints

2010 ◽  
Author(s):  
Michael Koenig ◽  
Claudio J. Tessone ◽  
Yves Zenou
Keyword(s):  
Capacity Constraints

scholarly journals Deagrarianisation of the Economic Structure and the Evolution of Rural Settlement Patterns in Poland

Land ◽  
2020 ◽  
Vol 9 (12) ◽  
pp. 523
Author(s):  
Andrzej Rosner ◽  
Monika Wesołowska
Keyword(s):  
Rural Areas ◽  
Settlement Patterns ◽  
Economic Structure ◽  
Rural Settlement ◽  
Spatial Effects ◽  
Central Statistical ◽  
Central Statistical Office ◽  
Second World

Since the Second World War, Poland has been undergoing an intensive process of transformation of the economic structure of rural areas, manifested, among other things, in the change in the occupational make-up of its inhabitants. The development of non-agricultural methods of management in rural areas has led to the emergence of multifunctional rural areas, where the role of agriculture as a source of income for the inhabitants is decreasing. There is a process of deagrarianisation of the economic structure, which has been indicated by many researchers as an unavoidable process, connected with the changes taking place in rural areas. One of the effects of this process are changes in rural settlement patterns. The aim of this article is to present the spatial effects of the deagrarianisation process in the Polish countryside, expressed in the changes in the rural settlement network. The authors used the statistical database of the Central Statistical Office (over 41 thousand records) to draw up the classification of rural areas by the nature of changes in population numbers in the period 1950–2011, which was compared with the research carried out as part of the Monitoring of Rural Development in Poland. The study confirmed that the factor behind the evolution of the rural settlement network is the process of decreasing agricultural demand for labour. As a consequence, there is a polarisation of localities into multifunctional rural localities, mainly headquarter villages and local government offices, and those with a predominantly agricultural function. On a supra-local scale, a process of polarisation of rural areas between a growing suburban population and a reducing peripheral location around large and medium-sized towns has been observed.

Spatial Effects and Ecological Inference

2002 ◽  
Vol 10 (3) ◽  
pp. 276-297 ◽  
Author(s):  
Luc Anselin ◽  
Wendy K. Tam Cho
Keyword(s):  
Data Analysis ◽  
Spatial Autocorrelation ◽  
Random Coefficient ◽  
Parameter Estimates ◽  
Spatial Effects ◽  
Ecological Inference ◽  
Simulation Experiments ◽  
Coefficient Variation ◽  
Inference Methods

This paper examines the role of spatial effects in ecological inference. Both formally and through simulation experiments, we consider the problems associated with ecological inference and cross-level inference methods in the presence of increasing degrees of spatial autocorrelation. Past assessments of spatial autocorrelation in aggregate data analysis focused on unidimensional, one-directional processes that are not representative of the full complexities caused by spatial autocorrelation. Our analysis is more complete and representative of true forms of spatial autocorrelation and pays particular attention to the specification of spatial autocorrelation in models with random coefficient variation. Our assessment focuses on the effects of this specification on the bias and precision of parameter estimates.

Spatial Effects in Risk-Based Design and Maintenance of Pipelines

2007 ◽  
Author(s):  
Marc A. Maes ◽  
Michael Havbro Faber
Keyword(s):  
Spatial Correlation ◽  
Unit Length ◽  
Limit State ◽  
Point Of View ◽  
Spatial Extent ◽  
System Component ◽  
Continuous Systems ◽  
Spatial Effects ◽  
Limit States

Pipelines are to a large extent spatially continuous systems having a system-component relationship that is not as clearly articulated as for other structural systems. Reliability-based design methods for pipelines often provide conflicting views about the spatial extent of limit states, the effect of spatial correlation, the applicability of target risks and target reliabilities (for instance on a per unit length basis), the link with lifecycle cost methods, and risk acceptability in general. The present paper first reviews probabilistic design and assessment approaches for pipelines, ranging from partial factors and limit state design, to reliability based and consequence-based methods. Subsequently we identify the various types of limit states from the point of view of their spatial characteristics. The paper also reviews the possible approaches to target risks and target reliabilities in view of the different spatial extent of the limit states. The role of spatial correlation as it impacts on different kind of pipeline limit states and on the risk acceptance process is discussed. The role of inspection, repair and maintenance can easily be included in many of the reliability-based pipeline design and assessment approaches as the lifetime costs of mitigative actions are fairly well defined, together with the spatially distributed consequences of failure, but they do add some additional challenges to the spatial modeling of the system.

FROM ASSORTATIVE TO DISSORTATIVE NETWORKS: THE ROLE OF CAPACITY CONSTRAINTS

2010 ◽  
Vol 13 (04) ◽  
pp. 483-499 ◽  
Author(s):  
MICHAEL D. KÖNIG ◽  
CLAUDIO J. TESSONE ◽  
YVES ZENOU
Keyword(s):  
Social Networks ◽  
Dynamic Model ◽  
Network Formation ◽  
Capacity Constraints ◽  
Simple Mechanism ◽  
Shed Light

We consider a dynamic model of network formation where agents form and sever links based on the centrality of their potential partners. We show that the existence of capacity constrains in the amount of links an agent can maintain introduces a transition from dissortative to assortative networks. This effect can shed light on the distinction between technological and social networks as it gives a simple mechanism explaining how and why this transition occurs.

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