Abstract
This paper provides extensive evidence from a simulation model supporting our claim that it is not appropriate to use the Euclidean metric in a competitive system where the Manhattan metric would provide a more accurate representation of distances. The Euclidean metric has the property of biasing firms' demands by a distortion of their sensitivity to competitive strategies and, therefore, generates an excessive level of competition.
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Thill, JC., Rushton, G. Demand sensitivity to space-price competition with Manhattan and Euclidean representations of distance. Ann Oper Res 40, 381–401 (1992). https://doi.org/10.1007/BF02060489
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DOI: https://doi.org/10.1007/BF02060489