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A Model Of Shopping Centers

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  • Kiyoshi Arakawa
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    Abstract

    In this paper, we propose a model of developers' strategies for tenant mixes and the locations of shopping centers (SCs). Consumers have preferences for product variety, and tenants in the SCs sell differentiated goods. The consumers can choose two shopping behaviors: patronizing one or both of the two SCs. We show that if the consumers have strong preferences for product variety, the SCs agglomerate to free-ride on the rivals' product varieties, and the consumers patronize both SCs. On the other hand, if consumer preferences are weak, the SCs locate at different locations, and the consumers patronize one of the two SCs. Copyright Blackwell Publishing, Inc. 2006

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9787.2006.00493.x
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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Regional Science.

    Volume (Year): 46 (2006)
    Issue (Month): 5 ()
    Pages: 969-990

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    Handle: RePEc:bla:jregsc:v:46:y:2006:i:5:p:969-990

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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    Cited by:
    1. Takatoshi Tabuchi, 2009. "Self-organizing Marketplaces," CIRJE F-Series CIRJE-F-607, CIRJE, Faculty of Economics, University of Tokyo.
    2. Zhou, Li, 2012. "Commercial Revitalization in Low-Income Urban Communities: General Tax Incentives vs. Direct Incentives to Developers," Working Papers 2012-4, University of Alberta, Department of Economics.
    3. Productivity Commission, 2008. "The Market for Retail Tenancy Leases in Australia," Inquiry Reports, Productivity Commission, Government of Australia, number 43.

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