An Agent-based Model of Retail Location with Complementary Goods

This paper examines the emergence of retail clusters on a supply chain network comprised of suppliers, retailers, and consumers. An agent-based model is proposed to investigate retail location distribution in a market of two complementary goods. The methodology controls for supplier locales and unit sales prices of retailers and suppliers; a consumer's willingness to patronize a retailer depends on the total travel distance of buying both goods. On a circle comprised of discrete locations, retailers play a non-cooperative game of location choice to maximize individual proÞts. Our Þndings suggest that the number of clusters in equilibrium follow a power-law distribution and that hierarchical distribution patterns are much more likely to occur than the spread-out ones. In addition, retailers of complementary goods tend to co-locate at supplier locales. Sensitivity tests on the number of retailers and retailers' sequence of moving are also performed.clustering, agent-based model, location choice, power-law distribution pattern, retailing

An agent-based retail location model on a supply chain network

Clusters of business locations, which considerably impact daily activities, have been prominent phenomena. Yet the question of how and why Þrms cluster in certain areas has not been sufficiently studied. This paper investigates the emergence of clusters of business locations on a supply chain network comprised of suppliers, retailers, and, consumers. Krugman (1996) argued that urban concentration involved a tension between the centripetal and the centrifugal forces. Based on that notion, this research proposes an agent-based model of retailers' location choice in a market of homogeneous products. In this game, retailers endeavor to maximize their proÞts by changing locations. Retailers' distribution patterns are measured by entropy and cluster density. Simulation results reveal that as more retailers engage in the game, clusters autonomously emerge and the entropy of clusters increases. Once retailers exceed a certain number, average density of clusters begins to decline; all discrete clusters gradually merge to a large cluster, spreading out uniformly. This research thus Þnds that the centripetal force attracts retailers to supplier locations; with even more retailers entering the market, the centrifugal force disperses them. The sensitivity results on model parameters and consumers' demand elasticity are also discussed.clustering, supply chain network, location choice, distribution pattern

Modeling Minneapolis Skyway Network

Adopting an agent-based approach, this paper explores the topological evolution of the Minneapolis Skyway System from a microscopic perspective. Under a decentralized decision-making mechanism, skyway segments are built by self-interested building owners. We measure the accessibility for the blocks from 1962 to 2002 using the size of office space in each block as an indicator of business opportunities. By building skyway segments, building owners desire to increase their buildingsÕ value of accessibility, and thus potential business revenue. The skyway network in equilibrium generated from the agent model displays similarity to the actual skyway system. The network topology is evaluated by multiple centrality measures (e.g., degree centrality, closeness centrality, and betweenness centrality) and a measure of road contiguity, roadness. Sensitivity tests such parameters as distance decay parameter and construction cost per unit length of segments are performed. Our results disclose that the accessibility- based agent model can provide unique insights for the dynamics of the skyway network growth.skyway network, network growth, agent-based modeling