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Communication among Firms, Traffic Congestion and Office Agglomeration


  • Mun, Se-il
  • Yoshikawa, Kazuhiro


In this paper, we propose a model of office location which deals explicitly with the role of face-to-face contacts among firms. In the model, the frequency of contacts with other firms are endogenously determined. The trade-off between communication activity and routine work is described by introducing a time constraint on working hours. Through numerical simulations, the properties of office location are demonstrated. First, the impacts of changes in model parameters on the spatial distribution of office firms are analyzed. Second, by taking account of traffic congestion on the road network as agglomeration diseconomy, various patterns of office distribution are described.

Suggested Citation

  • Mun, Se-il & Yoshikawa, Kazuhiro, 1993. "Communication among Firms, Traffic Congestion and Office Agglomeration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(1), pages 61-77.
  • Handle: RePEc:spr:anresc:v:27:y:1993:i:1:p:61-77

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    References listed on IDEAS

    1. Lederer, Phillip J & Hurter, Arthur P, Jr, 1986. "Competition of Firms: Discriminatory Pricing and Location," Econometrica, Econometric Society, vol. 54(3), pages 623-640, May.
    2. Dastidar, Krishnendu Ghosh, 1995. "On the Existence of Pure Strategy Bertrand Equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 19-32, January.
    3. Kats, A. & Thisse, J-F, 1989. "Spatial Oligopolies With Uniform Delivered Pricing," CORE Discussion Papers 1989003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Schuler, Richard E & Hobbs, Benjamin F, 1982. "Spatial Price Duopoly under Uniform Delivered Pricing," Journal of Industrial Economics, Wiley Blackwell, vol. 31(1-2), pages 175-187, September.
    5. Anderson, Simon P & de Palma, Andre & Thisse, Jacques-Francois, 1989. "Spatial Price Policies Reconsidered," Journal of Industrial Economics, Wiley Blackwell, vol. 38(1), pages 1-18, September.
    6. De Palma, Andre & Pedro Pontes, Jose & Thisse, Jacques-Franco, 1987. "Spatial competition under uniform delivered pricing," Regional Science and Urban Economics, Elsevier, vol. 17(3), pages 441-449, August.
    7. Gronberg, Timothy & Meyer, Jack, 1981. "Competitive Equilibria in Uniform Delivered Pricing Models," American Economic Review, American Economic Association, vol. 71(4), pages 758-763, September.
    8. MacLeod, W.B. & Norman, G. & Thisse, J.-F., 1988. "Price discrimination and equilibrium in monopolistic competition," International Journal of Industrial Organization, Elsevier, vol. 6(4), pages 429-446.
    9. Phlips,Louis, 1983. "The Economics of Price Discrimination," Cambridge Books, Cambridge University Press, number 9780521283946, March.
    10. Dixon, Huw, 1990. "Bertrand-Edgeworth Equilibria when Firms Avoid Turning Customers Away," Journal of Industrial Economics, Wiley Blackwell, vol. 39(2), pages 131-146, December.
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