Parallel Session 6.2- “Pricing & Geo Marketing ” 551 Dual Kernel Density Estimation as a Method for Describing Spatio-Temporal Changes in the Upper Austrian Food Retailing Market

This article discusses spatio-temporal variations in concentration processes and market dominance in the Upper Austrian food retailing market between 1998 and 2001 using the dual kernel density estimation approach. Dual kernel density estimation seems to be an appropriate instrument for the analysis since this statistical method together with the use of a geographic information system (GIS) not only allows the visualisation of concentration processes and market dominance but also enables the description of small-scale local changes. This is of special interest in the chosen study region since Upper Austria, although consisting mainly of rural areas also comprises urban regions. The result of the study shows an overall increase in market concentration and market dominance in favour of the two market leaders Rewe and Spar. This becomes especially apparent in the urban areas. In rural areas however, it shows that in certain districts the development was in favour of the group of the other food retailers