IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v25y1993i4p481-494.html
   My bibliography  Save this article

Retail Rents and Market Areas

Author

Listed:
  • R W Bacon

    (Lincoln College, University of Oxford, Oxford, 0X1 3DR, England)

Abstract

A model of the equilibrium spatial size of a market, in which shop rents are determined endogenously, is constructed on the lines of previous studies of market areas. Two cases are considered: the shop rents in the first model are determined by competition with the housing sector, whereas in the second the licensing of sites for retail use by a planning authority landlord which has as its aim the maximization of its receipts from all shops in the town is modelled. The models developed are solved for a range of parameter values. It is shown that allowing for the endogeneity of shop rents, as opposed to treating them as a fixed cost, reverses some well-established comparative static results—when income is increased the market area increases with an endogenous planning authority, whereas with exogenous shop rents the market area decreases. Differences are also established for variations in population density and the costs of travel to the shops.

Suggested Citation

  • R W Bacon, 1993. "Retail Rents and Market Areas," Environment and Planning A, , vol. 25(4), pages 481-494, April.
    • Handle: RePEc:sae:envira:v:25:y:1993:i:4:p:481-494
    DOI: 10.1068/a250481
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a250481
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a250481?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
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Capozza, Dennis R & Van Order, Robert, 1978. "A Generalized Model of Spatial Competition," American Economic Review, American Economic Association, vol. 68(5), pages 896-908, December.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Boris Hirsch & Marion König & Joachim Möller, 2013. "Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(4), pages 412-439, September.
    3. Shino, Junnosuke & Kawasaki, Ryo, 2012. "Farsighted stable sets in Hotelling’s location games," Mathematical Social Sciences, Elsevier, vol. 63(1), pages 23-30.
    4. Biing‐Shiunn Yang & Chao‐Cheng Mai, 2009. "Löschian competition under demand uncertainty," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 765-784, November.
    5. Andrea Amelio & Sara Biancini, 2010. "Alternating Monopoly And Tacit Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 58(2), pages 402-423, June.
    6. Stewart, Hayden & Dong, Diansheng, 2011. "Variation in retail costs for fresh vegetables and salty snacks across communities in the United States," Food Policy, Elsevier, vol. 36(2), pages 128-135, April.
    7. Stewart, Hayden & Davis, David E., 2005. "Price Dispersion and Accessibility: A Case study of Fast Food," MPRA Paper 7617, University Library of Munich, Germany.
    8. Jacques-François Thisse & Gilles Duranton, 1996. "La politique foncière dans une économie spatiale," Revue Économique, Programme National Persée, vol. 47(2), pages 227-261.
    9. Toshiharu Ishikawa & Masao Toda, 1995. "An Unequal Spatial Structure of Location and Price with Consumer Density," The Economic Record, The Economic Society of Australia, vol. 71(2), pages 167-178, June.
    10. Carballo, Jeronimo & Ottaviano, Gianmarco I.P. & Volpe Martincus, Christian, 2018. "The buyer margins of firms' exports," Journal of International Economics, Elsevier, vol. 112(C), pages 33-49.
    11. Bröcker, Johannes, 1998. "Welfare effects of a transport subsidy in a spatial price equilibrium," Discussion Papers 3/98, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    12. Adrián Palacios-Mateo, 2024. "Explaining pre-industrial inequality in Navarre and Aragon in the mid-19th century," Documentos de Trabajo de la Sociedad de Estudios de Historia Agraria 2402, Sociedad de Estudios de Historia Agraria.
    13. Marcus Berliant & Yves Zenou, 2014. "Labor Differentiation and Agglomeration in General Equilibrium," International Regional Science Review, , vol. 37(1), pages 36-65, January.
    14. Sandra T. Silva & Isabel Mota & Filipe Grilo, 2015. "The use of game theory in regional economics: A quantitative retrospective," Papers in Regional Science, Wiley Blackwell, vol. 94(2), pages 421-441, June.
    15. Thisse, Jacques-Francois & Wildasin, David E., 1995. "Optimal transportation policy with strategic locational choice," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 395-410, August.
    16. Toshiharu Ishikawa & Masao Toda, 2000. "Some Economic Extensions of Central-place Theory Involving Profit Maximisation," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 481-495, March.
    17. 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.
    18. Helge Sanner, 2009. "Economy vs. history," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 283-306, June.
    19. Toshiharu Ishikawa, 2010. "Effects of retail market structure and production conditions on firm’s location selections of fragmented production process," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 91-103, September.
    20. Schuetz, Jenny, 2015. "Why are Walmart and Target Next-Door neighbors?," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 38-48.

    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:sae:envira:v:25:y:1993:i:4:p:481-494. 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: SAGE Publications (email available below). General contact details of provider: .

    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.