IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v29y1995i4p389-407.html
   My bibliography  Save this article

Advertising and city formation with local public goods

Author

Listed:
  • Tatsuaki Kuroda

    (School of Informatics and Sciences, Nagoya University, Chikusa, Nagoya 464-01, Japan)

Abstract

This paper intends to integrate imperfect information into the Tiebout-type model so as to examine the role of information in city formation with local public goods. To do so, the author focuses on a specific land market in which land developers try to form cities by providing some quantity of local public goods as club goods. They advertise the location, rent, and service level of the public goods of the city, and homogeneous households have no alternative sources of information. A structure of information transmission following Butters (1977) is adopted which assumes a random process in the allocation of advertisements. Based on the model presented here, the following results are obtained: (1) All combinations of advertised rent and service level are on a curve which coincides with the income expansion path. This implies that the effect of the imperfectness of information may be mixed only with the variation caused by income heterogeneity. (2) Moreover, the equilibrium number of advertisements is socially optimal. (3) These results imply that, given the structure of information transmission, a free land market or city formation with imperfect information could still be justifiable.

Suggested Citation

  • Tatsuaki Kuroda, 1995. "Advertising and city formation with local public goods," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 29(4), pages 389-407.
  • Handle: RePEc:spr:anresc:v:29:y:1995:i:4:p:389-407 Note: Received: July 1992 / Accepted in revised form: February 1995
    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.

    References listed on IDEAS

    as
    1. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    2. Brons, Martijn & Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2002. "Price elasticities of demand for passenger air travel: a meta-analysis," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 165-175.
    3. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
    4. T J Fik & G F Mulligan, 1998. "Functional Form and Spatial Interaction Models," Environment and Planning A, , pages 1497-1507.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    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:anresc:v:29:y:1995:i:4:p:389-407. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.