Do we go shopping downtown or in the `burbs? Why not both?

Jacques Thisse, Igor Sloev and Philip Ushchev

No 9604, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion effect generated by consumers seeking more opportunities, and the ccompetition effect. Firms' profits increase (decrease) with the entry of local competitors when the former (latter) dominates. Downtown retailers swiftly vanish when the mall is large. A predatory but efficient mall need not be regulated, whereas the regulator must restrict the size of a mall accommodating downtown retailers.

Keywords: Shopping behavior; Retailers; Shopping mall; Spatial comparison; Monopolistic competition (search for similar items in EconPapers)
JEL-codes: D43 L81 R10 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-com and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://cepr.org/publications/DP9604 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Do we go shopping downtown or in the 'burbs? Why not both? (2014)
Working Paper: Do we go shopping downtown or in the ‘burbs’? Why not both? (2013)
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:cpr:ceprdp:9604

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP9604

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().