Question
The west Texas area in the plot above is served by a grocery store in community D. A proposed store with three times the
The west Texas area in the plot above is served by a grocery store in community D. A proposed store with three times the floor space is being considered for location in community C. Assume that monthly expenditures per customer average about $100. Then, using the metropolitan metric for travel and = 2, use the Huff model to estimate the impact on monthly expenditures and market share for the existing store in community Dif the proposed store in community C is constructed.
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Authors: Douglas Bernheim, Michael Whinston
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