Random Demand and Multistore Shopping Behaviour. A Cost Minimising Model Based on a Two Bin Inventory Management System

The paper illustrates how, if individual households face random daily demand for the goods they use, a two bin inventory strategy, for determining the frequency of shopping and the amounts purchased, will lead to multi-store shopping and realistic distributions of inter shopping times. This approach shows that it is possible to generate overlapping market areas of competing stores without relying on inter-household heterogeneity.

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Year of publication:	1998
Authors:	Bacon, R.W.
Institutions:	Department of Economics, Oxford University
Subject:	INVENTORIES \| DEMAND \| CONSUMERS

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Series:	Economics Series Working Papers.
Type of publication:	Book / Working Paper
Notes:	19 pages
Classification:	D11 - Consumer Economics: Theory ; C51 - Model Construction and Estimation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005051142