Advertisement

The Journal of Real Estate Finance and Economics

, Volume 27, Issue 3, pp 321–333 | Cite as

Inter-Center Retail Externalities

  • Luis C. Mejia
  • Mark J. Eppli
Article

Abstract

This paper empirically examines inter-center externalities in regional shopping centers. Specifically, we use a non-linear retail share model to measure the impact that department store size and image in subject and competitive centers have on subject center in-line retail sales. Our findings reveal that department store size and image attributes have a significant and non-linear impact on subject center sales. More importantly, the results show that the effect of department store fashion image dominates that of department store size.

inter-center inter-store retail shopping center mail sales market share 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Brueckner, J. (1993). “Inter-Store Externalities and Space Allocation in Shopping Centers,” Journal of Real Estate Finance and Economics 7, 5-16.Google Scholar
  2. Consumer Reports. (1998). “Ratings and Recommendations—Clothing Stores,” Consumer Reports, November, 17.Google Scholar
  3. Dougherty, C. (1992). Introduction to Econometrics. New York, NY: Oxford University Press.Google Scholar
  4. Dudey, M. (1993). “A Note on Consumer Search, Firm Location Choice, and Welfare,” The Journal of Industrial Economics 41, 323-331.Google Scholar
  5. Eppli, M. J., and J. D. Shilling. (1995). “Large-Scale Shopping Center Development Opportunities,” Land Economics 71, 35-41.Google Scholar
  6. Eppli, M. J., and J. D. Shilling. (1996). “How Critical is a Good Location to a Regional Shopping Center?” Journal of Real Estate Research 12, 459-469.Google Scholar
  7. Equitable Life Assurance Society of the United States vs. Minnesota. 1995. Nos. TC-13351, TC-16286, TC-18917, 1999 Minn. Tax Lexis 75 (Minn. Tax Ct., Nov. 27).Google Scholar
  8. Gabszewicz, J. J., and J. F. Thisse. (1986). “On the Nature of Competition with Differentiated Products,” Economic Journal 96, 160-172.Google Scholar
  9. Gatzlaff, D. H., G. S. Sirmans, and B. A. Diskin. (1994). “The Effect of Anchor Tenant Loss on Shopping Center Rents,” Journal of Real Estate Research, 9, 99-110.Google Scholar
  10. Gralla, H. (1991). “Judge Rejects Plan for Ward to Replace Bloomie's as Anchor,” Shopping Centers Today June 1.Google Scholar
  11. Grant, P. (2002). “Eye on Nordstrom,” Wall Street Journal February 13, B10.Google Scholar
  12. Huff, D. L. (1963). “A Probabilistic Analysis of Shopping Trade Areas,” Land Economics 39, 81-90.Google Scholar
  13. Keller, K. L. (1993). “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,” Journal of Marketing 57, 1-22.Google Scholar
  14. Lardaro, L. (1993). Applied Econometrics. New York, NY: Harpers Collins College Publishers.Google Scholar
  15. Mall of America v. State of Minnesota. Nos. TC-21195 (1994), TC-22440 (1995), TC-23648 (1995), slip op. Minn. Tax Ct.Google Scholar
  16. Miceli, T. J., and C. F. Sirmans. (1995). “Contracting with Spatial Externalities and Agency Problems: The Case of Retail Leases,” Regional Science and Urban Economics 25, 355-372.Google Scholar
  17. Nakanishi, M., and L. G. Cooper. (1974). “Parameter Estimate for Multiplicative Interactive Choice Models: The Least Square Approach,” Journal of Marketing Research 11, 303-311.Google Scholar
  18. Nevin, J. R., and M. J. Houston. (1980). “Image as a Component of Attraction to Intraurban Shopping Areas,” Journal of Retailing 56, 77-93.Google Scholar
  19. Pashigian, B. P., and E. D. Gould. (1998). “Internalizing Externalities: The Pricing of Space in Shopping Malls,” Journal of Law and Economics 41, 115-142.Google Scholar
  20. Shor, T. J. (1995). Directory of Major Shopping Centers. Spring Valley, NY: Directory of Major Shopping Centers Inc.Google Scholar
  21. Simon, C. J., and M. W. Sullivan. (1993). “The Measurement and Determinants of Brand Equity: A Financial Approach,” Marketing Science 12, 28-52.Google Scholar
  22. Sirmans, C. F., and K. A. Guidry. (1993). “The Determinants of Shopping Center Rents,” Journal of Real Estate Research 8, 107-116.Google Scholar

Copyright information

© Kluwer Academic Publishers 2003

Authors and Affiliations

  • Luis C. Mejia
    • 1
  • Mark J. Eppli
    • 2
  1. 1.Fannie MaeWashington, D.C
  2. 2.Department of FinanceMarquette UniversityMilwaukee

Personalised recommendations