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Location competition in an Alonso–Mills–Muth city

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  • Takahashi, Takaaki

Abstract

The purpose of this paper is to explain the decentralization process of an urban spatial structure in terms of the strategic interactions between firms. For that purpose, we expand the Hotelling model of a linear city to incorporate two aspects of the urban spatial structure, namely, the variation in land rent over space and the endogenous determination of city limits, both of which play important roles in the standard Alonso–Mills–Muth model. Our analysis reveals, among others, that decentralization occurs in a city when commuting costs decline more rapidly than shopping travel costs.

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  • Takahashi, Takaaki, 2014. "Location competition in an Alonso–Mills–Muth city," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 82-93.
    • Handle: RePEc:eee:regeco:v:48:y:2014:i:c:p:82-93
    DOI: 10.1016/j.regsciurbeco.2014.05.002
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    Cited by:

    1. Jing Li & Kevin Lo & Meng Guo, 2018. "Do Socio-Economic Characteristics Affect Travel Behavior? A Comparative Study of Low-Carbon and Non-Low-Carbon Shopping Travel in Shenyang City, China," IJERPH, MDPI, vol. 15(7), pages 1-11, June.
    2. Lingbo Liu & Zhenghong Peng & Hao Wu & Hongzan Jiao & Yang Yu & Jie Zhao, 2018. "Fast Identification of Urban Sprawl Based on K-Means Clustering with Population Density and Local Spatial Entropy," Sustainability, MDPI, vol. 10(8), pages 1-16, July.
    3. Fu-Chuan Lai & David Merriman & Jyh-Fa Tsai, 2014. "Land use and rent gradients with a monopoly vendor and two central business districts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 745-760, November.

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    More about this item

    Keywords

    Agglomeration; City limits; Commuting costs; Hotelling model; Land rent; Shopping travel costs; Strategic interaction; Urban spatial structure;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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