IDEAS home Printed from https://ideas.repec.org/a/taf/specan/v8y2013i4p425-442.html
   My bibliography  Save this article

Small, Local and Cheap? Walkable and Car-oriented Retail in Competition

Author

Listed:
  • Frederick Guy

Abstract

I develop a model of competition between walkable shops, and other shops whose customers drive (car-oriented shops). Walkable shops operate in monopolistic competition within a local area, or neighbourhood. A small cost advantage for car-oriented shops can turn into a larger price advantage. High prices in walkable shops effect a regressive transfer from poorer to richer consumers, since the poorer are less likely to have cars. Internalizing environmental and social costs of urban automobile use could reduce prices and increase capacity utilization in walkable shops in more densely populated local areas. Many common combinations of planning and pricing tools fail to internalize important costs, and may actually subsidize driving to shop, but a combination of planning and the pricing (through taxation) of retail parking could effectively internalize the relevant costs.

Suggested Citation

  • Frederick Guy, 2013. "Small, Local and Cheap? Walkable and Car-oriented Retail in Competition," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(4), pages 425-442, February.
    • Handle: RePEc:taf:specan:v:8:y:2013:i:4:p:425-442
    DOI: 10.1080/17421772.2013.833344
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17421772.2013.833344
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17421772.2013.833344?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
    2. Gu, Yiquan & Wenzel, Tobias, 2009. "A note on the excess entry theorem in spatial models with elastic demand," International Journal of Industrial Organization, Elsevier, vol. 27(5), pages 567-571, September.
    3. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2005. "Optimal cordon pricing in a non-monocentric city," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 723-736.
    4. Buehler, Ralph, 2011. "Determinants of transport mode choice: a comparison of Germany and the USA," Journal of Transport Geography, Elsevier, vol. 19(4), pages 644-657.
    5. Paul M. Sweezy, 1939. "Demand Under Conditions of Oligopoly," Journal of Political Economy, University of Chicago Press, vol. 47(4), pages 568-568.
    6. Philip McCann, 1995. "Journey and Transactions Frequency: An Alternative Explanation of Rent-gradient Convexity," Urban Studies, Urban Studies Journal Limited, vol. 32(9), pages 1549-1556, November.
    7. Knowles, Richard D., 2012. "Transit Oriented Development in Copenhagen, Denmark: from the Finger Plan to Ørestad," Journal of Transport Geography, Elsevier, vol. 22(C), pages 251-261.
    8. Pines, David & Sadka, Efraim, 1985. "Zoning, first-best, second-best, and third-best criteria for allocating land for roads," Journal of Urban Economics, Elsevier, vol. 17(2), pages 167-183, March.
    9. Brownstone, David & Golob, Thomas F., 2009. "The impact of residential density on vehicle usage and energy consumption," Journal of Urban Economics, Elsevier, vol. 65(1), pages 91-98, January.
    10. Jan K. Brueckner, 2000. "Urban Sprawl: Diagnosis and Remedies," International Regional Science Review, , vol. 23(2), pages 160-171, April.
    11. A. P. Lerner & H. W. Singer, 1937. "Some Notes on Duopoly and Spatial Competition," Journal of Political Economy, University of Chicago Press, vol. 45(2), pages 145-145.
    12. Arnott, Richard & Rowse, John, 2009. "Downtown parking in auto city," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 1-14, January.
    13. Frederick Guy, 2007. "Redistribution Through Local Competition," Springer Books, in: Toichiro Asada & Toshiharu Ishikawa (ed.), Time and Space in Economics, chapter 16, pages 297-307, Springer.
    14. Evans, Alan W., 1999. "The land market and government intervention," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 42, pages 1637-1669, Elsevier.
    15. Edward Calthrop & Stef Proost & Kurt van Dender, 2000. "Parking Policies and Road Pricing," Urban Studies, Urban Studies Journal Limited, vol. 37(1), pages 63-76, January.
    16. Marsden, Greg, 2006. "The evidence base for parking policies--a review," Transport Policy, Elsevier, vol. 13(6), pages 447-457, November.
    17. Matthias Ruth (ed.), 2006. "Smart Growth and Climate Change," Books, Edward Elgar Publishing, number 3938.
    18. Weinberger, Rachel, 2012. "Death by a thousand curb-cuts: Evidence on the effect of minimum parking requirements on the choice to drive," Transport Policy, Elsevier, vol. 20(C), pages 93-102.
    19. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    20. Robert Cervero & Mark Hansen, 2002. "Induced Travel Demand and Induced Road Investment: A Simultaneous Equation Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 36(3), pages 469-490, September.
    21. Zenk, S.N. & Schulz, A.J. & Israel, B.A. & James, S.A. & Bao, S. & Wilson, M.L., 2005. "Neighborhood racial composition, neighborhood poverty, and the spatial accessibility of supermarkets in metropolitan Detroit," American Journal of Public Health, American Public Health Association, vol. 95(4), pages 660-667.
    22. Amanda Whelan & Neil Wrigley & Daniel Warm & Elizabeth Cannings, 2002. "Life in a 'Food Desert'," Urban Studies, Urban Studies Journal Limited, vol. 39(11), pages 2083-2100, October.
    23. Falconer, Ryan & Newman, Peter & Giles-Corti, Billie, 2010. "Is practice aligned with the principles? Implementing New Urbanism in Perth, Western Australia," Transport Policy, Elsevier, vol. 17(5), pages 287-294, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaoling Chen & Susheng Wang & Haisheng Yang, 2015. "Spatial Competition and Interdependence in Strategic Decisions: Empirical Evidence from Franchising," Economic Geography, Clark University, vol. 91(2), pages 165-204, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Keisuke Hattori & Takeshi Yoshikawa, 2016. "Free entry and social inefficiency under co-opetition," Journal of Economics, Springer, vol. 118(2), pages 97-119, June.
    2. Qian Liu & James Wang & Peng Chen & Zuopeng Xiao, 2017. "How does parking interplay with the built environment and affect automobile commuting in high-density cities? A case study in China," Urban Studies, Urban Studies Journal Limited, vol. 54(14), pages 3299-3317, November.
    3. Gu Yiquan & Wenzel Tobias, 2012. "Price-Dependent Demand in Spatial Models," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-26, March.
    4. Evangelinos, Christos & Tscharaktschiew, Stefan & Marcucci, Edoardo & Gatta, Valerio, 2018. "Pricing workplace parking via cash-out: Effects on modal choice and implications for transport policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 369-380.
    5. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    6. Shengyuan Zhang & Jimin Zhao, 2016. "Low-Carbon Futures for Shenzhen’s Urban Passenger Transport System," HKUST IEMS Working Paper Series 2016-33, HKUST Institute for Emerging Market Studies, revised Jun 2016.
    7. Richard Schmalensee, 2012. "“On a Level with Dentists?” Reflections on the Evolution of Industrial Organization," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 41(3), pages 157-179, November.
    8. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    9. Andrea L. Sparks & Neil Bania & Laura Leete, 2011. "Comparative Approaches to Measuring Food Access in Urban Areas," Urban Studies, Urban Studies Journal Limited, vol. 48(8), pages 1715-1737, June.
    10. Gu, Yiquan & Rasch, Alexander & Wenzel, Tobias, 2022. "Consumer salience and quality provision in (un)regulated public service markets," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    11. Hirte, Georg & Tscharaktschiew, Stefan, 2018. "The impact of anti-congestion policies and the role of labor-supply margins," CEPIE Working Papers 04/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    12. Lundberg, Alexander, 2015. "Non-monotonic network effects and market entry," Economics Letters, Elsevier, vol. 137(C), pages 146-149.
    13. Ramon Caminal, 2016. "Dynamic Product Diversity," Journal of Industrial Economics, Wiley Blackwell, vol. 64(1), pages 1-26, March.
    14. Tscharaktschiew, Stefan & Reimann, Felix, 2021. "On employer-paid parking and parking (cash-out) policy: A formal synthesis of different perspectives," Transport Policy, Elsevier, vol. 110(C), pages 499-516.
    15. Tim Paul Thomes, 2010. "Vertically Related Markets of Collective Licensing of Differentiated Copyrights with Indirect Network Effects," Jena Economics Research Papers 2010-056, Friedrich-Schiller-University Jena.
    16. Jeffrey M. Perloff & Steven C. Salop, 1985. "Equilibrium with Product Differentiation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 107-120.
    17. Pierre M. Picard & Eric Toulemonde, 2009. "On monopolistic competition and optimal product diversity: workers' rents also matter," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(4), pages 1347-1360, November.
    18. Ortuño-Padilla, Armando & Fernández-Aracil, Patricia, 2013. "Impact of fuel price on the development of the urban sprawl in Spain," Journal of Transport Geography, Elsevier, vol. 33(C), pages 180-187.
    19. Rey, Patrick & Salant, David, 2012. "Abuse of dominance and licensing of intellectual property," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 518-527.
    20. Kelemen, József, 2020. "Szimultán Hotelling-modell Cobb-Douglas-hasznosságfüggvénnyel [A simultaneous Hotelling model with a Cobb-Douglas utility function]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 14-30.

    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:taf:specan:v:8:y:2013:i:4:p:425-442. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RSEA20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.