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Bargaining power of landlords and underdevelopment in a system of cities

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  • Yasuhiro Sato

Abstract

. We consider two models of a system of cities in which landlords have some power in negotiating rental prices at which land is rented to develop cities. Analysis shows that the equilibrium city size is smaller than the optimal city size in a model in which city sizes are controlled by development companies or by local governments. Furthermore, it is shown that the equilibrium city size tends to be either smaller or larger than the optimal city size in a model in which city sizes are not controlled. These results confirm the possibility of underdevelopment of cities.

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  • Yasuhiro Sato, 2005. "Bargaining power of landlords and underdevelopment in a system of cities," Papers in Regional Science, Wiley Blackwell, vol. 84(2), pages 239-250, June.
    • Handle: RePEc:bla:presci:v:84:y:2005:i:2:p:239-250
    DOI: 10.1111/j.1435-5957.2005.00015.x
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    1. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
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