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Zoning a cross-border city

Author

Listed:
  • Bárcena Ruiz, Juan Carlos
  • Casado Izaga, Francisco Javier

Abstract

This paper investigates zoning in a cross-border linear city that consists of two bordering towns. In each town a local regulator has a say in the location of the local firm. The incentive to gain consumers from the other town, or not to lose local consumers, may push regulators to approve only locations for firms close enough to the frontier. When zoning is costly an asymmetric equilibrium may emerge: only one regulator resorts to zoning. In the case of towns of different sizes the regulator of the larger town is the only one that zones in an asymmetric equilibrium.

Suggested Citation

  • Bárcena Ruiz, Juan Carlos & Casado Izaga, Francisco Javier, 2015. "Zoning a cross-border city," IKERLANAK Ikerlanak;2015-89, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  • Handle: RePEc:ehu:ikerla:15484
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    File URL: https://addi.ehu.es/handle/10810/15484
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    References listed on IDEAS

    as
    1. Juan Carlos Bárcena-Ruiz & Francisco Javier Casado-Izaga, 2014. "Zoning Under Spatial Price Discrimination," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 659-665, April.
    2. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
    3. Stefano Colombo, 2012. "On optimal zoning in a linear town with Cournot competitors," Letters in Spatial and Resource Sciences, Springer, vol. 5(2), pages 113-118, July.
    4. Juan Carlos Bárcena-Ruiz & F. Javier Casado-Izaga & Hamid Hamoudi & Isabel Rodriguez, 2016. "Optimal zoning in the unconstrained Hotelling game," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 427-435, June.
    5. Juan Bárcena Ruiz & F. Casado-Izaga & Hamid Hamoudi, 2014. "Optimal zoning of a mixed duopoly," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 141-153, January.
    6. Hamid Hamoudi & Marta Risueño, 2012. "The Effects Of Zoning In Spatial Competition," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 361-374, May.
    7. Lai, Fu-Chuan & Tsai, Jyh-Fa, 2004. "Duopoly locations and optimal zoning in a small open city," Journal of Urban Economics, Elsevier, vol. 55(3), pages 614-626, May.
    8. Chen, Chin-Sheng & Lai, Fu-Chuan, 2008. "Location choice and optimal zoning under Cournot competition," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 119-126, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    zoning; spatial; competition; location; choice;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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