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Modeling Interaction in a System of Markets
Authors:Andrew J Krmenec  Adrian Esparza
Abstract:This paper develops a nested family of market interaction models for the general case of spatial or aspatial goods. Market structure effects are identified in the form of intraregional and extraregional competition. The competing destinations and competing central place models are shown to be special cases of the general modeling framework. An empirical example, using survey data collected from Chicago-area Management and Public Relations (SIC 874) firms, illustrates how the family of models may be used to identify market structure.
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