Location competition in an Alonso–Mills–Muth city

Takaaki Takahashi ()

Regional Science and Urban Economics, 2014, vol. 48, issue C, 82-93

Abstract: The purpose of this paper is to explain the decentralization process of an urban spatial structure in terms of the strategic interactions between firms. For that purpose, we expand the Hotelling model of a linear city to incorporate two aspects of the urban spatial structure, namely, the variation in land rent over space and the endogenous determination of city limits, both of which play important roles in the standard Alonso–Mills–Muth model. Our analysis reveals, among others, that decentralization occurs in a city when commuting costs decline more rapidly than shopping travel costs.

Keywords: Agglomeration; City limits; Commuting costs; Hotelling model; Land rent; Shopping travel costs; Strategic interaction; Urban spatial structure (search for similar items in EconPapers)
JEL-codes: L13 R10 R32 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:48:y:2014:i:c:p:82-93

DOI: 10.1016/j.regsciurbeco.2014.05.002

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