Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Working Knowledge
Business Research for Business Leaders
  • Browse All Articles
  • Popular Articles
  • Cold Call Podcast
  • Managing the Future of Work Podcast
  • About Us
  • Book
  • Leadership
  • Marketing
  • Finance
  • Management
  • Entrepreneurship
  • All Topics...
  • Topics
    • COVID-19
    • Entrepreneurship
    • Finance
    • Gender
    • Globalization
    • Leadership
    • Management
    • Negotiation
    • Social Enterprise
    • Strategy
  • Sections
    • Book
    • Podcasts
    • HBS Case
    • In Practice
    • Lessons from the Classroom
    • Op-Ed
    • Research & Ideas
    • Research Event
    • Sharpening Your Skills
    • What Do You Think?
    • Working Paper Summaries
  • Browse All
    Does Apple Anchor a Shopping Mall? The Effect of the Technology Stores on the Formation of Market Structure
    28 Jan 2020Working Paper Summaries

    Does Apple Anchor a Shopping Mall? The Effect of the Technology Stores on the Formation of Market Structure

    by Doug J. Chung, Kyoungwon Seo, and Reo Song
    Anchor stores are the key tenants in a mall, occupying most of the gross leasable area and generating much of the foot traffic. This research provides a framework to understand why new and traditional anchor stores join a shopping mall and how their decisions affect mall configuration.
    LinkedIn
    Email

    Author Abstract

    This study examines the effect of technology stores—company-owned Apple and Microsoft retail stores—on mall configuration. We formulate a structural model that considers the endogenous location decisions of retail stores, taking into account both market characteristics and the spillover effects of co-location. As a byproduct, the study provides guidance on location choice to mall developers and retailers by examining the equilibrium outcome of mall configuration that affects retail sales. The results show that competitive effects dominate within and across store categories for traditional department stores, but agglomeration effects exist between technology stores and upscale department stores. The presence of an Apple store, for example, attracts high-income consumers, promoting the entry of upscale stores and the exit of midscale and discount stores. This study also introduces three key methodological innovations to the marketing literature. First, we address multiple equilibria by estimating equilibrium selection from the observed data. Second, we develop an efficient simulator that requires fewer random draws to evaluate the likelihood function for complete information games with multiple equilibria. Third, we overcome the remaining computational burden by utilizing the GPGPU technology, using multiple processing cores in a graphics-processing unit to increase computational speed.

    Paper Information

    • Full Working Paper Text
    • Working Paper Publication Date: December 2019
    • HBS Working Paper Number: HBS Working Paper #20-066
    • Faculty Unit(s): Marketing
      Trending
        • 08 Sep 2022
        • Book

        Gen Xers and Millennials, It’s Time To Lead. Are You Ready?

        • 28 Mar 2023
        • Research & Ideas

        The FDA’s Speedy Drug Approvals Are Safe: A Win-Win for Patients and Pharma Innovation

        • 25 Jan 2022
        • Research & Ideas

        More Proof That Money Can Buy Happiness (or a Life with Less Stress)

        • 25 Feb 2019
        • Research & Ideas

        How Gender Stereotypes Kill a Woman’s Self-Confidence

        • 14 Mar 2023
        • In Practice

        What Does the Failure of Silicon Valley Bank Say About the State of Finance?

    Find Related Articles
    • Business Strategy
    • Geographic Location
    • Retail
    • Real Estate

    Sign up for our weekly newsletter

    Interested in improving your business? Learn about fresh research and ideas from Harvard Business School faculty.
    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    ǁ
    Campus Map
    Harvard Business School Working Knowledge
    Baker Library | Bloomberg Center
    Soldiers Field
    Boston, MA 02163
    Email: Editor-in-Chief
    →Map & Directions
    →More Contact Information
    • Make a Gift
    • Site Map
    • Jobs
    • Harvard University
    • Trademarks
    • Policies
    • Accessibility
    • Digital Accessibility
    Copyright © President & Fellows of Harvard College