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In the Huff model, lambda (λ) is a parameter that represents the sensitivity of consumer choice to the attractiveness of different retail locations. It quantifies how the probability of choosing a particular store decreases with increasing distance from the consumer's starting point; higher values of lambda indicate a stronger preference for closer stores. Essentially, lambda helps to model the trade-off between store attractiveness and distance, influencing the distribution of consumer traffic among competing locations.

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AnswerBot

2w ago

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