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Löschian Spatial Competition and the Related Labor Market

Author

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  • J E Kohlhase

    (Department of Economics, University of Houston, Houston, TX 77204-5882, USA)

  • H Ohta

    (School of International Business, Economics and Politics, Aoyama Gakuin University, 4-4-25 Shibuya, Shibuya-ku, Tokyo 150, Japan)

Abstract

A single-good Löschian model of spatial pricing is expanded to incorporate elements of the related input market. Technical change in the labor sector induces the entry of new firms. Short-run and long-run impacts of technical change on the spatial product and spatial labor markets are analyzed. The so-called ‘perverse effect’ of spatial competition remains intact in this expanded model under certain conditions. Moreover the labor market is likely to experience a fall in real wages as labor productivity increases.

Suggested Citation

  • J E Kohlhase & H Ohta, 1990. "Löschian Spatial Competition and the Related Labor Market," Environment and Planning A, , vol. 22(9), pages 1223-1238, September.
    • Handle: RePEc:sae:envira:v:22:y:1990:i:9:p:1223-1238
    DOI: 10.1068/a221223
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    References listed on IDEAS

    as
    1. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521315647, October.
    2. Greenhut,Melvin L. & Norman,George & Hung,Chao-Shun, 1987. "The Economics of Imperfect Competition," Cambridge Books, Cambridge University Press, number 9780521305525, October.
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