A New Set of Spatial-Interaction Models: The Theory of Competing Destinations

Members of the family of spatial-interaction models commonly referred to as gravity models are shown to be misspecified. One result of this misspecification is the occurrence of an undesirable ‘spatial-structure effect’ in estimated distance-decay parameters and this effect is examined in detail. An alternative set of spatial-interaction models is formulated from which more accurate predictions of interactions and more accurate parameter estimates can be obtained. These new interaction models are termed competing destinations models, and estimated distance-decay parameters obtained in their calibration are shown to have a purely behavioural interpretation. The implications of gravity-model misspecification are discussed.