EFFICIENT AGGLOMERATION OF SPATIAL CLUBS

Oded Hochman ()
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Oded Hochman: Dept. of Economics, Ben-Gurion University of the Negev

No 903, Working Papers from Ben-Gurion University of the Negev, Department of Economics

Abstract: The literature on agglomeration has focused largely on primary agglomeration caused by direct attraction effects. Here we focus on secondary and tertiary agglomerations caused by a primary agglomeration. Initially, scale economies in the provision of club goods (CGs) lead each CG to agglomerate in facilities of a club. This primary agglomeration causes a secondary concentration of population around these facilities, which in turn brings about a tertiary agglomeration of facilities of different clubs into centers. The agglomeration of facilities occurs only if a secondary concentration of population takes place. We analyze in detail two specific patterns of agglomeration. One is the central location pattern in which the facilities of all clubs agglomerate perfectly in the middle of their joint market area. The second is a triple-centered complex in which the center in the middle of the complex consists of perfectly agglomerated facilities of different clubs, each with a single facility per complex. The other two sub-centers consist of facilities of different clubs, each with two facilities per complex. These sub-centers are closer to the middle of the complex than to the boundaries and their facilities form condensed clusters of facilities that may contain residential land in between the facilities.

Keywords: agglomeration; clubs; complex; collective goods; local public goods; indirect attraction (search for similar items in EconPapers)
JEL-codes: H4 R1 (search for similar items in EconPapers)
Pages: 81 pages
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:bgu:wpaper:0903

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