Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 77: A compelling argument for the gravity p-median model

Kenneth Carling and Johan Håkansson ()
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Kenneth Carling: School of Technology and Business Studies, Postal: Dalarna university , SE-791 88 , Falun, Sweden
Johan Håkansson: The Swedish Research Institute of Trade (HUI), Postal: HUI Research, Regeringsgatan 60, 103 29 Stockholm, Sweden, and School of Technology and Business Studies , Dalarna university , SE-791 88 , Falun, Sweden

Abstract: The p-median model is used to locate P facilities to serve a geographically distributed population. Conventionally, it is assumed that the population always travels to the nearest facility. Drezner and Drezner (2006, 2007) re-estate three arguments on why this assumption might be incorrect, and they introduce the gravity p-median model to relax the assumption. We favour the gravity p-median model, but we note that in an applied setting, the three arguments are incomplete. In this communication, we point at the existence of a fourth compelling argument for the gravity p-median model.

Keywords: travel time; spatial aggregation; multi-purpose trips

JEL-codes: L22; L81; R12

5 pages, November 4, 2012

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