Charles C. Carter

Dispersion of stores of the same type in shopping malls: theory and preliminary evidence

A theoretical justification is set out for the dispersion of non-anchor stores by store type in shopping malls and some preliminary evidence presented to support it. The basic theoretical outline of spatial economic behaviour developed by Ingene and Ghosh (Geographical Analysis, 22(1), 70-93, 1990) is first considered and it is expanded to include customer traffic in two directions. The results of this economic model of customer behaviour are discussed in the context of shopping malls. Simple assumptions about points of supply and demand in shopping malls provide the basis for a general test of the model. Using an algorithm called the p-median problem, and a data base of several regional and super-regional shopping malls scattered throughout the United States, it was found that the supply of goods of the same type was dispersed throughout the mall and consistent with the model.

Graaskamp’s Concept of Highest and Best Use

The concept of highest and best use (HBU) is fundamental to the estimation of market value in appraisal. For James A. Graaskamp this concept was in need of revision for both theoretical and practical reasons. Theoretically, HBU had to be interpreted in the context of most probable or most fitting use, consistent with definitions of the time. Graaskamp asserted this concept should be both stochastic (incorporating considerations of risk and uncertainty) and dynamic (evolving over time). Further, from the standpoint of practice, HBU should represent what best serves society and not simply be interpreted from the narrow reference point of the private market. This mandates consideration of aspects of real estate in the context of public goods. The Appraisal of 25 North Pinck-ney perhaps provides his best working definition of the concept. This chapter traces Graaskamp’s concept of HBU through his works and concludes with a more formal integration of his concept with the current economic literature on public and private goods.