Lesson 10: Modelling Spatial Interaction: Huff and MCI Models

In this lesson, you will learn the basic concepts Spatial Interaction and Huff and MCI Models for market area analysis.

Content

• Basic Concepts of Spatial Interaction
• Introducing Huff model
  • Basic concepts and method
  • Calibrating Huff model
  • Interpreting Huff model results
• Introducing Multiplicative Competitive Interaction Model (MCI)
  • Basic concepts and method
  • Calibrating MCI model
  • Interpreting MCI model results

Lesson Slides and Hands-on Notes

• Lesson 10 slides in html format.

Self-reading Before Meet-up

Read before lesson:

• A.18 – Spatial Interactions and the Gravity Model
• A.15 – Market Area Analysis
• Huff, D. (1963)A Probabilistic Analysis of Shopping Center Trade Areas
• Masao Nakanishi, Lee G. Cooper, (1982) Technical Note—Simplified Estimation Procedures for MCI Models. Marketing Science 1(3):314-322. http://dx.doi.org/10.1287/mksc.1.3.314

Reference

• Kingsley E. Haynes and A. Stewart Fotheringham (2020) Gravity and Spatial Interaction Models, Web Book of Regional Science. Chapter 1 and Sub-section 2.2.
• Farmer, C. and Oshan, T. (2017). “Spatial interaction”. The Geographic Information Science & Technology Body of Knowledge (4th Quarter 2017 Edition), John P. Wilson (ed.). DOI: 10.22224/gistbok/2017.4.5 (link is external)
• Flowerdew R, Aitkin M (1982) “A method of fitting the gravity model based on the Poisson distribution”. Journal of Regional Science, 22: 191–202.
• ” Chapter 6. Spatial econometrics - common models”, Handbook of Spatial Analysis.
• James P. LeSage and R. Kelley Pace (2008) “Spatial Econometric Modeling of Origin-Destination Flows”. Journal of Regional Science, Vol. 48, No. 5, pp. 941-967.
• Pavel KLAPKA, et. al. (2013) “The Footfall of Shopping Centre in Olomouc (CZECH REPUBLIC): An Application of The Gravity Model”, Moravian Geographical Reports, Vol 21, pp. 12-26.
  
• Yang Yue et. al. (2012) “Exploratory calibration of a spatial interaction model using taxi GPS trajectories”, Computers, Environment and Urban Systems, 36 (2012) 140–153.
• Morito Tsutsumi and Kazuki Tamesue (2012) “Intraregional flow problem in spatial econometric model for origin-destination flows”, Environment and Planning B: Planning and Design, Vol. 39, pp. 1006-1015. Access via SMU e-journal.

All About R:

• MCI: Multiplicative Competitive Interaction (MCI) Model
• Wieland, T., (2017) Market Area Analysis for Retail and Service Locations with MCI, The R Journal, Vol. 9, No. 1, pp. 298-323.
• REAT: Regional Economic Analysis Toolbox