This paper presents a new multivariate spatial statistic developed to identify different interaction patterns between competing retail outlets. In order to define when two outlets are located relatively close to each other, a topological proximity criterion is suggested. Asymptotic properties of the new statistic are derived analytically and finite sample properties are obtained through Monte Carlo simulations. Various simulation experiments confirm that the statistic is robust and that it can distinguish pairwise categorical association from clustering in the joint population. To demonstrate its usefulness, the statistic is applied to competing retail chains in two retail sectors.JEL classification: C40, C60, R12
As the American craft brewing industry matures, closures are becoming more prevalent. This paper studies the geographic patterns of and locational factors associated with craft brewery closures in three US cities with particular focus on the role of clustering on firm mortality. While the proximity of other breweries is not statistically significant in explaining brewery mortality, closures appear to occur outside of known clusters and in more residential areas outside of downtown districts. This study contributes to the literature on the relationship between clustering and firm failure rates as well as the debate regarding land use regulations surrounding craft breweries.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.