A new method is proposed to map firms' principal market areas using sh
ipment data. The new method is a general one which could prove just as
useful In mapping the incidence of disease as in mapping market areas
. This method is applied to agricultural data for feeder cattle sales
at a video cattle auction. Transportation costs appear to be the main
determinant of market area boundaries, but there are many cases where
transportation costs alone cannot explain the market areas found. The
size and shape of market areas for feeder cattle buyers are large, irr
egularly shaped, and extensively overlapping.