Consumers’ Spatial Choice Behavior

This study surveys microeconomic and microeconometric models of individual-location choice that permit the analysis of the determinants of individual choice among various combinations of location-specific goods. Using the example of tourists' destination choice, it is shown how the market segmentation process can be endogenized and implemented in nested multinomial and universal logit models. The formation of spatial alternatives and the representation of agent-specific heterogeneity are prime issues in empirical studies of location choice.