Conditional forecasting of the trade area dimension

In the paper, we present some applications of Huff’s and Laksmanan–Hansen’s models to the trade area range analysis. The subjects discussed are illustrated by an example of the real area with three hypothetical trade centers. In order to quantitatively express the factors describing trade centers we propose an approach using the experts evaluation method. The contour and surface probability maps for trade centers and financial flow matrices have been evaluated and designed. Composing the maps of several centers in the same picture, the areas of dominance of particular centers have been marked. The border lines of the range of the neighbouring centers are represented by the equal probability curves. We show that the model can be used for forecasting purposes. To this end, we define and illustrate the notion of the trade area range conditional probability.