| Abstract: | 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. |
