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The article discusses the nature of trading areas in commerce. The author states that objectives of this paper are to measure principal techniques used to delineate retail trading areas, enumerate significant conclusions derived from empirical studies using such techniques, and present an alternative technique, believed to be better conceptually and superior predictively. His findings allow him to define a trading area as "a geographically delineated region, containing potential customers for whom there exists a probability greater than zero of their purchasing a given class of products or services offered for sale by a particular firm or by a particular agglomeration of firms."