Skip to main content
SpringerLink
Log in

Spatial demand under advertising

An optimal solution for a CBD-retail firm

  • Published:
The Annals of Regional Science Aims and scope Submit manuscript

Abstract

Contrary to the traditional theory of market areas which has as the central theme the firms' price changes and the demand-reactions of the widely dispersed households, our model shows the optimal solutions for the spatial use of advertising. If we assume that a central-urban located firm intends to maximize the additional net revenue by applying advertising as an instrumentvariable; we can show that the whole urban area will not be covered by the advertising campaign, but in all cases only partial areas. In this instance the optimal advertising radius will be derived from various model variants.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Chrisholm, M.Human Geography, Harmondsworth, 1975.

  2. Clark, C. “Urban Population Densities,”Journal of the Royal Statistical Society, 114 (1951), 490–496.

    Google Scholar 

  3. Cohen, S. B. and Applebaum, W. “Evaluation Store Site and Determining Store Rents,”Economic Geography, 36 (1960), 1–35.

    Google Scholar 

  4. Fukuchi, T. “The Double-Ring Structure Model of Metropolitan Area,” T. Fujii/R. Sato (ed.),Resource Allocation and Division of Space, Berlin, Heidelberg, New York, 1977, pp. 147–170.

  5. Greenhut, M. L.A Theory of the Firm in Economic Space, 2nd ed., Austin, Tex., 1974.

  6. Greenhut, M. L. and Ohta, H.Theory of Spatial Pricing and Market Areas, Durham, N.C.,1975.

  7. Hägerstrand, T. “Aspects of the Spatial Structure of Social Communication and Diffusion of Information,”Papers of the Regional Science Association, 16 (1966), 27–42.

    Google Scholar 

  8. Kotler, P.Marketing Decision Making, A Model Building Approach, London, New York, Sydney, Toronto, 1971.

  9. Lösch, A.Die räumliche Ordnung der Wirtschaft, 3rd ed., Stuttgart, 1962.

  10. Mills, E. S. “Urban Density Functions,”Urban Studies, 7 (1970), 5–20.

    Google Scholar 

  11. Nordin, J. A. “Spatial Allocation of Selling Expense,” F. U. Bass and R. D. Buzell (ed.),Mathematical Models and Methods in Marketing, Homewood, Ill., 1961, pp. 173–194.

  12. Ott, A. E. “Ein statisches Modell der Preisbildung im Einzelhandel,” Jahrbücher fur Nationalökonomie und Statistik, 172 (1960), 1–31.

    Google Scholar 

  13. Papageorgiou, G. J. “A Generalization of the Population Density Gradient Concept,”Geographical Analysis, 3 (1971), 121–127.

    Google Scholar 

  14. Papageorgiou, G. J. and Casetti, E. “Spatial Equilibrium Residential Land Values in a Multicentre Setting,”Journal of Regional Science, 10 (1971), 385–389.

    Google Scholar 

  15. Richardson, H. W. “A Note on the Dynamics of Population Density Gradients,”Annals of Regional Science, 10 (1976), 15–18.

    Google Scholar 

  16. Schöler, K.Wettbewerbsgrenzen bei monopolistischer Konkurrenz, Meisenheim/Glan, 1977.

  17. Zentler, A. P. and Ryde, D. “An Optimum Geographical Distribution of Publicity Expenditure in a Private Organization,”Management Science, 2 (1956), 337–352.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, University of Siegen, Siegen, West Germany

    Klaus Schöler

Authors
  1. Klaus Schöler
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Schöler, K. Spatial demand under advertising. Ann Reg Sci 16, 25–36 (1982). https://doi.org/10.1007/BF01287404

Download citation

  • Received:

  • Revised:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01287404

Keywords

Search

Navigation