IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v48y2014icp82-93.html
   My bibliography  Save this article

Location competition in an Alonso–Mills–Muth city

Author

Listed:
  • Takahashi, Takaaki

Abstract

The purpose of this paper is to explain the decentralization process of an urban spatial structure in terms of the strategic interactions between firms. For that purpose, we expand the Hotelling model of a linear city to incorporate two aspects of the urban spatial structure, namely, the variation in land rent over space and the endogenous determination of city limits, both of which play important roles in the standard Alonso–Mills–Muth model. Our analysis reveals, among others, that decentralization occurs in a city when commuting costs decline more rapidly than shopping travel costs.

Suggested Citation

  • Takahashi, Takaaki, 2014. "Location competition in an Alonso–Mills–Muth city," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 82-93.
    • Handle: RePEc:eee:regeco:v:48:y:2014:i:c:p:82-93
    DOI: 10.1016/j.regsciurbeco.2014.05.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046214000532
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.regsciurbeco.2014.05.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Helsley, Robert W. & Sullivan, Arthur M., 1991. "Urban subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 255-275, July.
    2. Henderson, Vernon & Mitra, Arindam, 1996. "The new urban landscape: Developers and edge cities," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 613-643, December.
    3. Glaeser, Edward L. & Kahn, Matthew E., 2004. "Sprawl and urban growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 56, pages 2481-2527, Elsevier.
    4. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    5. Yinger, John, 1992. "City and suburb: Urban models with more than one employment center," Journal of Urban Economics, Elsevier, vol. 31(2), pages 181-205, March.
    6. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
    7. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
    8. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    9. Fujita, Masahisa & Thisse, Jacques-Francois & Zenou, Yves, 1997. "On the Endogeneous Formation of Secondary Employment Centers in a City," Journal of Urban Economics, Elsevier, vol. 41(3), pages 337-357, May.
    10. Ross, Stephen & Yinger, John, 1995. "Comparative static analysis of open urban models with a full labor market and suburban employment," Regional Science and Urban Economics, Elsevier, vol. 25(5), pages 575-605, October.
    11. Lai, Fu-Chuan & Tsai, Jyh-Fa, 2008. "Simplified Alonso-Mills-Muth model with a monopoly vendor," Journal of Urban Economics, Elsevier, vol. 63(2), pages 536-543, March.
    12. Anas, Alex & Kim, Ikki, 1996. "General Equilibrium Models of Polycentric Urban Land Use with Endogenous Congestion and Job Agglomeration," Journal of Urban Economics, Elsevier, vol. 40(2), pages 232-256, September.
    13. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
    14. White, Michelle J., 1976. "Firm suburbanization and urban subcenters," Journal of Urban Economics, Elsevier, vol. 3(4), pages 323-343, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Lingbo Liu & Zhenghong Peng & Hao Wu & Hongzan Jiao & Yang Yu & Jie Zhao, 2018. "Fast Identification of Urban Sprawl Based on K-Means Clustering with Population Density and Local Spatial Entropy," Sustainability, MDPI, vol. 10(8), pages 1-16, July.
    2. Jing Li & Kevin Lo & Meng Guo, 2018. "Do Socio-Economic Characteristics Affect Travel Behavior? A Comparative Study of Low-Carbon and Non-Low-Carbon Shopping Travel in Shenyang City, China," IJERPH, MDPI, vol. 15(7), pages 1-11, June.
    3. Fu-Chuan Lai & David Merriman & Jyh-Fa Tsai, 2014. "Land use and rent gradients with a monopoly vendor and two central business districts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 745-760, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frederic Gilli, 2009. "Sprawl or Reagglomeration? The Dynamics of Employment Deconcentration and Industrial Transformation in Greater Paris," Urban Studies, Urban Studies Journal Limited, vol. 46(7), pages 1385-1420, June.
    2. McMillen, Daniel P. & Smith, Stefani C., 2003. "The number of subcenters in large urban areas," Journal of Urban Economics, Elsevier, vol. 53(3), pages 321-338, May.
    3. Duranton, Gilles & Puga, Diego, 2015. "Urban Land Use," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 467-560, Elsevier.
    4. Garcia-López, Miquel-Àngel & Hémet, Camille & Viladecans-Marsal, Elisabet, 2017. "Next train to the polycentric city: The effect of railroads on subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 50-63.
    5. Yoon Sang Moon, 2022. "Internal structure of consumer cities: Core and subcenters," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1250-1273, November.
    6. Garrido-da-Silva, Liliana & Castro, Sofia B.S.D. & Correia-da-Silva, João, 2022. "Location of housing and industry around city centre amenities," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    7. Daniel P. McMillen, 2003. "Employment subcenters in Chicago: past, present, and future," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 27(Q II), pages 2-14.
    8. Rémi Lemoy & Charles Raux & Pablo Jensen, 2016. "Exploring the polycentric city with multi-worker households: an agent-based microeconomic model," Post-Print hal-00602087, HAL.
    9. Yiu, C.Y. & Tam, C.S., 2007. "Housing price gradient with two workplaces -- An empirical study in Hong Kong," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 413-429, May.
    10. Ivan Muñiz & Anna Galindo & Miguel Angel García, 2005. "Descentralisation, Integration and polycentrism in Barcelona," Working Papers wpdea0512, Department of Applied Economics at Universitat Autonoma of Barcelona.
    11. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    12. Berliant, Marcus & Wang, Ping, 2008. "Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl," Journal of Urban Economics, Elsevier, vol. 63(2), pages 679-693, March.
    13. Karen A. Kopecky & Richard M. H. Suen, 2010. "A Quantitative Analysis Of Suburbanization And The Diffusion Of The Automobile," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 1003-1037, November.
    14. Bumsoo Lee, 2006. "'Edge' or 'Edgeless Cities'? Urban Spatial Structure in US Metropolitan Areas, 1980 to 2000," Working Paper 8574, USC Lusk Center for Real Estate.
    15. Yiu, Chung Yim, 2011. "A spatial portfolio theory of household location choice," Journal of Transport Geography, Elsevier, vol. 19(4), pages 584-590.
    16. Blanca Arellano & Montserrat Moix & Josep Roca, 2011. "Towards a New Methodology to evaluate the Urban structure of the Metropolitan Systems; Chicago and Barcelona Metropolitan Areas as Examples," ERSA conference papers ersa11p1779, European Regional Science Association.
    17. Barros Antunes Campos, Rodger & Squarize Chagas, André Luis, 2019. "Employment Sub-Centers in a Megacity from a Developing Country: The Case of the Municipality of São Paulo, Brazil," TD NEREUS 5-2019, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    18. Josep Roca Cladera & Carlos R. Marmolejo Duarte & Montserrat Moix, 2009. "Urban Structure and Polycentrism: Towards a Redefinition of the Sub-centre Concept," Urban Studies, Urban Studies Journal Limited, vol. 46(13), pages 2841-2868, December.
    19. Ivan Muñiz & Miquel Àngel Garcia-López & Anna Galindo, 2008. "The Effect of Employment Sub-centres on Population Density in Barcelona," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 627-649, March.
    20. Bode, Eckhardt, 2006. "Commuting, externalities, and the geographical sizes of metropolitan areas," Kiel Working Papers 1289, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    Agglomeration; City limits; Commuting costs; Hotelling model; Land rent; Shopping travel costs; Strategic interaction; Urban spatial structure;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

    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:eee:regeco:v:48:y:2014:i:c:p:82-93. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/regec .

    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.