Retailing and network economic analysis

Michel BOISVERT, Retailing and network economic analysis. For geographers, retail network operations are dominated by accessibility conditions between customers and sales outlets and by the hierarchical structure of retailable goods and services. With respect to the latter, positive externalities, also known as spatial affinities, play a crucial role. For economists, competitive conditions within and between networks need to be spelled out if a proper understanding of retail dynamics, both in temporal spatial terms, is sought. Accordingly, negative externalities are to be accounted for, especially the impact of new shopping facilities on land values and rental fees in nearby retail areas. This paper discusses at some length each of these propositions and suggests ways in which they could be generalized to any networking system. Several insights relating graph theory to such basic concepts as hierarchy, competition and externality are also brought to bear.Boisvert Michel. Retailing and network economic analysis. In: Flux, n°9, 1992. pp. 33-43