The Economics of Inter-City Competition in Financial and Distribution Markets

Eddery Lam () and Chi-Yin Wu ()
Additional contact information
Chi-Yin Wu: Department of Economics, Feng Chia University, Taiwan

Journal of Economics and Management, 2016, vol. 12, issue 1, 85-117

Abstract: We introduce a model of inter-city competition within a multidimensional framework. More specifically, we extend a single-sector model to one comprising two sectors, namely, a financial sector and a distribution sector in a three-stage sequential-game framework. There are two types of infrastructure, with one for each sector. The government of each city can build the infrastructure necessary to increase the competitiveness of the relevant sector. However, given that resources are limited, each city has to decide on which type of infrastructure to build, as well as on which elements of that type they wish to invest in. Under this framework, we show that the relative abundance of resources, the initial costs of providing services, and the relative effectiveness of the infrastructure determine the amount of infrastructure the government decides to build, and thus the outcome of the game.

Keywords: inter-city competition; multidimensional framework; public infrastructure (search for similar items in EconPapers)
JEL-codes: F1 F12 O1 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.jem.org.tw/content/pdf/Vol.12No.1/04.pdf (application/pdf)
http://www.jem.org.tw/content/abstract/Vol.12No.1/English/04.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jec:journl:v:12:y:2016:i:1:p:85-117

Access Statistics for this article

Journal of Economics and Management is currently edited by Cathy W. S. Chen and Shih-Wen Hu

More articles in Journal of Economics and Management from College of Business, Feng Chia University, Taiwan Contact information at EDIRC.
Bibliographic data for series maintained by Yi-Ju Su ().