ISSN:
1432-0592
Source:
Springer Online Journal Archives 1860-2000
Topics:
Architecture, Civil Engineering, Surveying
,
Geography
,
Economics
Notes:
Abstract The purpose of this paper is to show, in the context of a specific labor relations case, that spatial competition analysis can help regulatory authorities evaluate a firm's location strategy. The case involves the relocation of a supermarket franchisee, and two alternative explanations for the move are advanced. In the first explanation, it is argued that the supermarket relocation can be a form of strategic behavior that provides the least costly way of circumventing an institutional constraint that would otherwise make it difficult to convert a store from union to nonunion status. The second explanation is that the move is motivated by competitive considerations, particularly the desire of the franchisor to save a failing franchisee by moving it, and so that a new franchise could be opened in the vacated store and compete more aggressively with a recent entrant. A locational investigation, in conjunction with a regression analysis of sales data, support the rejection of the second explanation.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01582003
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