Zoning a cross-border city

Juan Carlos Bárcena Ruiz and Francisco Javier Casado Izaga
Authors registered in the RePEc Author Service: Juan Carlos Bárcena-Ruiz and F. Javier Casado-Izaga

IKERLANAK from Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I

Abstract: This paper investigates zoning in a cross-border linear city that consists of two bordering towns. In each town a local regulator has a say in the location of the local firm. The incentive to gain consumers from the other town, or not to lose local consumers, may push regulators to approve only locations for firms close enough to the frontier. When zoning is costly an asymmetric equilibrium may emerge: only one regulator resorts to zoning. In the case of towns of different sizes the regulator of the larger town is the only one that zones in an asymmetric equilibrium.

Keywords: zoning; spatial; competition; location; choice (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-geo and nep-ure
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Related works:
Journal Article: ZONING A CROSS-BORDER CITY (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ehu:ikerla:15484

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Dpto. de Fundamentos del Análisis Económico I, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

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