Spatial retail markets

In retail markets, the nature of spatial cost differs markedly from specifications given in traditional spatial models. At the retail level, transportation is provided by the household and incurred on a per shopping trip basis. In traditional models, the source of transportation is ignored and the cost specified to accrue on a per unit basis. Additionally, in a retail market, spatial cost may be obviated altogether by virtue of a commute. When these characteristics are taken into account, the spatial retail model is inherently more competitive in structure and performance than the traditional spatial model.