Spatial Configurations, Competition and Welfare

Toshiharu Ishikawa and Masao Toda

The Annals of Regional Science, 1990, vol. 24, issue 1, 12 pages

Abstract: Studies into the shapes of market areas abound and emphasize the hexagon as the optimal configuration. This paper demonstrates that a triangular or a square market area can be superior to a hexagonal one under certain behavioral conditions. Spatial configurations are evaluated on the basis of (1) the number of firms required to fill a given market area and (2) the level of welfare per unit area that these firms generate under alternative competitive conditions.

Date: 1990
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