IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v71y1995i2p167-178.html
   My bibliography  Save this article

An Unequal Spatial Structure of Location and Price with Consumer Density

Author

Listed:
  • TOSHIHARU ISHIKAWA
  • MASAO TODA

Abstract

This paper incorporates the interdependent relationship of firms and the increasing consumer density into a framework of spatial equilibrium analysis, and studies the location of firms and the price system on a plane market. As consumer density increases, symmetric equilibrium is established initially for the first‐ and the second‐round entry of firms, but this equilibrium becomes unequal later for the third and the fourth rounds. This fact means that in spatial equilibrium, even if all firms sell identical goods on a plane market, mill prices and market area sizes will differ.

Suggested Citation

  • Toshiharu Ishikawa & Masao Toda, 1995. "An Unequal Spatial Structure of Location and Price with Consumer Density," The Economic Record, The Economic Society of Australia, vol. 71(2), pages 167-178, June.
    • Handle: RePEc:bla:ecorec:v:71:y:1995:i:2:p:167-178
    DOI: 10.1111/j.1475-4932.1995.tb01883.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1995.tb01883.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1995.tb01883.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Parr, John B, 1993. "Competition, Supply Areas and Industrial Location: An Equilibrium Perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(3), pages 191-210, September.
    2. Holahan, William L & Schuler, Richard E, 1981. "The Welfare Effects of Market Shapes in the Loschian Location Model: Squares vs. Hexagons [The Non-Uniqueness of Equilibrium in the Loschian Location Model]," American Economic Review, American Economic Association, vol. 71(4), pages 738-746, September.
    3. MacLeod, W B & Norman, G & Thisse, J-F, 1987. "Competition, Tacit Collusion and Free Entry," Economic Journal, Royal Economic Society, vol. 97(385), pages 189-198, March.
    4. Capozza, Dennis R & Van Order, Robert, 1978. "A Generalized Model of Spatial Competition," American Economic Review, American Economic Association, vol. 68(5), pages 896-908, December.
    5. A. P. Lerner & H. W. Singer, 1937. "Some Notes on Duopoly and Spatial Competition," Journal of Political Economy, University of Chicago Press, vol. 45, pages 145-145.
    6. Ishikawa, Toshiharu & Toda, Masao, 1990. "Spatial Configurations, Competition and Welfare," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 24(1), pages 1-12.
    7. B. Curtis Eaton & Myrna Holtz Wooders, 1985. "Sophisticated Entry in a Model of Spatial Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 282-297, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toshiharu Ishikawa & Masao Toda, 1998. "An Application of the Frontier Price Concept in Spatial Equilibrium Analysis," Urban Studies, Urban Studies Journal Limited, vol. 35(8), pages 1345-1358, July.
    2. Toshiharu Ishikawa & Masao Toda, 2000. "Some Economic Extensions of Central-place Theory Involving Profit Maximisation," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 481-495, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Amelio & Sara Biancini, 2010. "Alternating Monopoly And Tacit Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 58(2), pages 402-423, June.
    2. George Norman & Jacques‐François Thisse, 1999. "Technology Choice and Market Structure: strategic aspects of flexible manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 47(3), pages 345-372, September.
    3. Ralph Braid, 2013. "The locations of firms on intersecting roadways," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 791-808, June.
    4. Ralph M. Braid, 2016. "Potential merger-forcing entry reduces maximum spacing between firms in spatial competition," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 653-669, August.
    5. Toshiharu Ishikawa & Masao Toda, 2000. "Some Economic Extensions of Central-place Theory Involving Profit Maximisation," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 481-495, March.
    6. Toshiharu Ishikawa & Masao Toda, 1998. "An Application of the Frontier Price Concept in Spatial Equilibrium Analysis," Urban Studies, Urban Studies Journal Limited, vol. 35(8), pages 1345-1358, July.
    7. Vickrey, William S. & Anderson, Simon P. & Braid, Ralph M., 1999. "Spatial competition, monopolistic competition, and optimum product diversity," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 953-963, October.
    8. Ishikawa, Toshiharu & Toda, Masao, 2005. "Retail market structure and the threat by the manufacturer to sell goods directly to the consumer," Socio-Economic Planning Sciences, Elsevier, vol. 39(1), pages 43-55, March.
    9. Boris Hirsch & Marion König & Joachim Möller, 2013. "Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(4), pages 412-439, September.
    10. Julien Forder & Ann Netten, 2000. "The price of placements in residential and nursing home care: the effects of contracts and competition," Health Economics, John Wiley & Sons, Ltd., vol. 9(7), pages 643-657, October.
    11. Kelemen, József, 2020. "Szimultán Hotelling-modell Cobb-Douglas-hasznosságfüggvénnyel [A simultaneous Hotelling model with a Cobb-Douglas utility function]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 14-30.
    12. Webers, H.M., 1994. "Non-uniformities in spatial location models," Other publications TiSEM 40900087-273a-4119-8f78-3, Tilburg University, School of Economics and Management.
    13. Gianmarco I P Ottaviano & Jacques-François Thisse, 2005. "New Economic Geography: What about the N?," Environment and Planning A, , vol. 37(10), pages 1707-1725, October.
    14. Matsumura, Toshihiro & Okamura, Makoto, 2006. "A note on the excess entry theorem in spatial markets," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 1071-1076, September.
    15. Biing‐Shiunn Yang & Chao‐Cheng Mai, 2009. "Löschian competition under demand uncertainty," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 765-784, November.
    16. Stewart, Hayden & Dong, Diansheng, 2011. "Variation in retail costs for fresh vegetables and salty snacks across communities in the United States," Food Policy, Elsevier, vol. 36(2), pages 128-135, April.
    17. Stewart, Hayden & Davis, David E., 2005. "Price Dispersion and Accessibility: A Case study of Fast Food," MPRA Paper 7617, University Library of Munich, Germany.
    18. Javier Elizalde & Markus Kinateder & Ignacio Rodríguez-Carreño, 2015. "Entry regulation, firm’s behaviour and social welfare," European Journal of Law and Economics, Springer, vol. 40(1), pages 13-31, August.
    19. Anderson, Simon P. & de Palma, Andre, 2000. "From local to global competition," European Economic Review, Elsevier, vol. 44(3), pages 423-448, March.
    20. Daniel Serra & Charles Revelle, 1997. "Competitive location and pricing on networks," Economics Working Papers 219, Department of Economics and Business, Universitat Pompeu Fabra.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:71:y:1995:i:2:p:167-178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.