IDEAS home Printed from https://ideas.repec.org/a/bla/jindec/v41y1993i3p323-31.html
   My bibliography  Save this article

A Note on Consumer Search, Firm Location Choice, and Welfare

Author

Listed:
  • Dudey, Marc

Abstract

Although geographical concentrations of retail firms facilitate search, such concentrations also increase wasteful travel by consumers. An elementary example shows that (1) it may be impossible for a planner to achieve the first best level of surplus by simply assigning firms to locations and (2) market forces may necessarily lead to clustering when this is even worse than the planner's solution. A modification of the example shows that market forces can result in firms' always locating apart when clustering is the most efficient configuration of firms. Copyright 1993 by Blackwell Publishing Ltd.

Suggested Citation

  • Dudey, Marc, 1993. "A Note on Consumer Search, Firm Location Choice, and Welfare," Journal of Industrial Economics, Wiley Blackwell, vol. 41(3), pages 323-331, September.
    • Handle: RePEc:bla:jindec:v:41:y:1993:i:3:p:323-31
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1821%28199309%2941%3A3%3C323%3AANOCSF%3E2.0.CO%3B2-N&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Berg, Nathan, 2008. "Imitation in location choice," MPRA Paper 26592, University Library of Munich, Germany.
    2. Non, Marielle, 2010. "Isolation or joining a mall? On the location choice of competing shops," MPRA Paper 20044, University Library of Munich, Germany.
    3. Helsley, Robert W. & Strange, William C., 2007. "Agglomeration, opportunism, and the organization of production," Journal of Urban Economics, Elsevier, vol. 62(1), pages 55-75, July.
    4. Konishi, Hideo, 2005. "Concentration of competing retail stores," Journal of Urban Economics, Elsevier, vol. 58(3), pages 488-512, November.
    5. Camacho-Cuena, Eva & Garcia-Gallego, Aurora & Georgantzis, Nikolaos & Sabater-Grande, Gerardo, 2005. "Buyer-seller interaction in experimental spatial markets," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 89-108, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:41:y:1993:i:3:p:323-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.