Showing posts with label complementarity. Show all posts
Showing posts with label complementarity. Show all posts

Tuesday, 10 December 2013

Spatial interaction

Spatial interaction is the flow of products, people, services, or information among places, in response to localized supply and demand.

Spatial interactions usually include a variety of movements such as:

  • travel, 
  • migration, 
  • transmission of information, 
  • journeys to work or shopping, 
  • retailing activities, or 
  • freight distribution.




The basis of spatial interaction is based on three phenomena

  • complementarity (a deficit of a good or product in one place and a surplus in another), 
  • transferability (possibility of transport of the good or product at a cost that the market will bear), and 
  • lack of intervening opportunities (where a similar good or product that is not available at a closer distance).