Consumer and Producer Behavior in a Multipurpose Shopping Environment

This paper analyzes the shopping behavior of consumers across space within the context of multipurpose shopping. The degree of multipurpose shopping is derived, as are the optimal number of single- and multipurpose trips, and the quantities of high- and low-order goods purchased on such trips. It is shown that all consumer choice variables are a function of consumer location relative to producer location. The consumer analysis is then utilized as an input into the profit-maximizing equation that determines optimal producer location. The model is illustrated through the use of numerical analysis.