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The economic development incentives game: an imperfect information, heterogeneous communities approach

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  • Carlianne Patrick

Abstract

The economic development incentives game developed in this paper extends the basic incentives game framework utilized in previous research by: (1) assuming heterogeneous communities with a priori unknown (to the communities or the firm) benefits and costs associated with the location, (2) providing a mechanism for communities to discover their true benefits and costs, and (3) allowing firms, as well as communities, to experience consequences associated with accepting a ‘bad deal’. Modeling an incentives competition game with these elements generates equilibrium behaviors and payoffs consistent with those observed in empirical and case studies. Copyright Springer-Verlag Berlin Heidelberg 2014

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  • Carlianne Patrick, 2014. "The economic development incentives game: an imperfect information, heterogeneous communities approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 137-156, August.
  • Handle: RePEc:spr:anresc:v:53:y:2014:i:1:p:137-156
    DOI: 10.1007/s00168-014-0621-5
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    Cited by:

    1. Carlianne Patrick, 2014. "Does Increasing Available Non-Tax Economic Development Incentives Result in More Jobs?," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(2), pages 351-386, June.
    2. Ki-Eun Kang & George C. Homsy, 2020. "Make Me a Better Offer: Developer Threats and Regional Competition for Land Development Projects," Economic Development Quarterly, , vol. 34(1), pages 21-30, February.
    3. Jia Wang & Stephen E. Ellis & Cynthia Rogers, 2018. "Income Inequality and Economic Development Incentives in US States: Robin Hood in Reverse?," The Review of Regional Studies, Southern Regional Science Association, vol. 48(1), pages 93-117, Spring.

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    More about this item

    Keywords

    H71; O18; R38;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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