publication . Preprint . 2001

Clustering and Joint Marketing in Retail Trade

Bohlin, Nils;
Open Access
  • Published: 04 Dec 2001
Abstract
This paper presents the idea that retail trade stories might cluster with their competitors to pool marketing expenses and thereby increase their individual visibility among consumers. In a model which presumes such a marketing technology we derive some new comparative statics results. In a small/mega center we expect more competing stores in retail trade markets where products are heterogenous and consumers like to compare products before they buy, i.e. where people like to shop around. The size of the demand (number of consumers) is expected to have a greater impact on the number of stores in heterogenous markets compared to homogenous. We also show in this mo...
Subjects
free text keywords: Clustering; Retail Trade; Joint Marketing; Malls, jel:C52, jel:D21, jel:L81, jel:R12
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