Two-dimensional Geographical Position as a Factor in Determining the Growth and Decline of Retail Agglomeration

Hiroki Aizawa and Tatsuhito Kono

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate where retail stores agglomerate in a road network with radial roads and a ring road in a two-dimensional space. Per-distance travel cost on the radial roads can be different from that on the ring road. The transition of the two-dimensional agglomeration patterns of retail stores is investigated with decreases in the travel costs. Results show 1) a difference in improvement sequences in the radial and ring roads generates a difference in the agglomeration patterns with different welfare levels and 2) how the two-dimensional geographical position of shopping agglomerations ensuring the highest welfare level differs from that in equilibrium.

Keywords: Agglomeration; Bifurcation; Monopolistic competition; Two-dimensional road network (search for similar items in EconPapers)
JEL-codes: L1 R1 R4 (search for similar items in EconPapers)
Date: 2022-03-07
New Economics Papers: this item is included in nep-com, nep-geo, nep-tre and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:112274

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