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Location of Retail Stores in City Center and Outskirts under Spatial Price Competition: Improvements in Radial and Ring Roads

Author

Listed:
  • Akio Kishi

    (University of Shizuoka)

  • Tatsuhito Kono

    (Tohoku University)

  • Yoshitaka Nozoe

    (East Japan Railway Company)

Abstract

Retail stores locate in both the center and the outskirts of most cities. Their locations can change with transportation improvements. This paper presents a spatial price competition model with central and outlying commercial areas. It illustrates the relationship between retail store location and transportation improvements. An improvement of a radial road connecting the city center and the outskirts contributes to commercial development in the central area. However, an improvement of a ring road in the outskirts does not always engender a decline in the number of stores in central commercial areas.

Suggested Citation

  • Akio Kishi & Tatsuhito Kono & Yoshitaka Nozoe, 2015. "Location of Retail Stores in City Center and Outskirts under Spatial Price Competition: Improvements in Radial and Ring Roads," The Review of Regional Studies, Southern Regional Science Association, vol. 45(2), pages 173-194, Fall.
    • Handle: RePEc:rre:publsh:v45:y:2015:i:2:p:173-194
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    References listed on IDEAS

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    1. E Borukhov & O Hochman, 1977. "Optimum and Market Equilibrium in a Model of a City without a Predetermined Center," Environment and Planning A, , vol. 9(8), pages 849-856, August.
    2. Ikeda, Kiyohiro & Akamatsu, Takashi & Kono, Tatsuhito, 2012. "Spatial period-doubling agglomeration of a core–periphery model with a system of cities," Journal of Economic Dynamics and Control, Elsevier, vol. 36(5), pages 754-778.
    3. Masahisa Fujita & Jacques-François Thisse, 1986. "Spatial Competition with a Land Market: Hotelling and Von Thunen Unified," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(5), pages 819-841.
    4. A. Smithies, 1941. "Optimum Location in Spatial Competition," Journal of Political Economy, University of Chicago Press, vol. 49(3), pages 423-423.
    5. Capozza, Dennis R & Van Order, Robert, 1977. "Pricing under Spatial Competition and Spatial Monopoly," Econometrica, Econometric Society, vol. 45(6), pages 1329-1338, September.
    6. 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.
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    Cited by:

    1. Kishi, Akio & Kono, Tatsuhito, 2020. "Transportation Improvement and Hollowing-out of Urban Commercial Center: Do They Harm Consumer Welfare?," MPRA Paper 99247, University Library of Munich, Germany.
    2. Aizawa, Hiroki & Kono, Tatsuhito, 2022. "Two-dimensional Geographical Position as a Factor in Determining the Growth and Decline of Retail Agglomeration," MPRA Paper 112274, University Library of Munich, Germany.

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    More about this item

    Keywords

    retail stores location; spatial price competition;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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