IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-4-431-45978-1_16.html
   My bibliography  Save this book chapter

Redistribution Through Local Competition

In: Time and Space in Economics

Author

Listed:
  • Frederick Guy

    (University of London)

Abstract

Summary We have developed a model with two kinds of shops (local and out-of-town) and two kinds of consumer (mobile and immobile). We assume that local shops operate in monopolistic competition, while the market structure for out-of-town shops is a stable oligopoly among large retail chains. We show that policies which raise the net cost (price plus consumer travel costs) of shopping out of town may cause a discontinuous drop in the price level in local shops. The price drop is accompanied by both the entry of new local shops and a reduction of excess capacity in local shops. We draw the following conclusions from the model. To the extent that local shops serve a poorer clientele, a rise in prices at out-of-town shops will have a progressive distributive effect if it results in the local price reduction predicted here. Moreover, the same measures have the potential to improve allocative efficiency through a combination of reductions in local excess capacity and the internalization of social and environmental costs of automobile use.

Suggested Citation

  • Frederick Guy, 2007. "Redistribution Through Local Competition," Springer Books, in: Toichiro Asada & Toshiharu Ishikawa (ed.), Time and Space in Economics, chapter 16, pages 297-307, Springer.
    • Handle: RePEc:spr:sprchp:978-4-431-45978-1_16
    DOI: 10.1007/978-4-431-45978-1_16
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Frederick Guy, 2013. "Small, Local and Cheap? Walkable and Car-oriented Retail in Competition," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(4), pages 425-442, February.

    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:spr:sprchp:978-4-431-45978-1_16. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.