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Preference for Product Variety and City Size

Author

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  • Hikaru Ogawa

    (Graduate School of Economics, Nagoya University, Furo-Cho, Chikusa-Ku, Nagoya 464-01, Japan, d950010d@eds.ecip.nagoya-u.ac.jp)

Abstract

In this paper, we examine the effect on city size of household preference for product variety. There are many theoretical analyses that have attempted to clarify the determinants of city size in the urban literature. Comparative static analyses are used to find out what happens to the equilibrium city size if the exogenous variables change by a small amount. Using the model of monopolistic competition, we provide a simple model of product variety to show that the equilibrium city size depends on the degree of household preference for product variety. The main result is that the strong preference for product variety promotes the formation of a large city.

Suggested Citation

  • Hikaru Ogawa, 1998. "Preference for Product Variety and City Size," Urban Studies, Urban Studies Journal Limited, vol. 35(1), pages 45-51, January.
    • Handle: RePEc:sae:urbstu:v:35:y:1998:i:1:p:45-51
    DOI: 10.1080/0042098985069
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    References listed on IDEAS

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    Cited by:

    1. Gerald A. Carlino & Albert Saiz, 2019. "Beautiful city: Leisure amenities and urban growth," Journal of Regional Science, Wiley Blackwell, vol. 59(3), pages 369-408, June.
    2. Fournier, Anne J., 2018. "Direct-selling farming and urban externalities: What impact on product quality and market size?," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 97-111.
    3. Glazer, Amihai & Kondo, Hiroki, 2007. "Migration in search of good government," Regional Science and Urban Economics, Elsevier, vol. 37(6), pages 703-716, November.
    4. ChuangLin Fang & XingLiang Guan & ShaSha Lu & Min Zhou & Yu Deng, 2013. "Input–Output Efficiency of Urban Agglomerations in China: An Application of Data Envelopment Analysis (DEA)," Urban Studies, Urban Studies Journal Limited, vol. 50(13), pages 2766-2790, October.
    5. Akira Nishimori, 1999. "Product Variety and Sector-specific Unemployment," Urban Studies, Urban Studies Journal Limited, vol. 36(9), pages 1467-1473, August.
    6. Shunfeng Song & Kevin Honglin Zhang, 2002. "Urbanisation and City Size Distribution in China," Urban Studies, Urban Studies Journal Limited, vol. 39(12), pages 2317-2327, November.
    7. Glazer, Amihai & Gradstein, Mark & Ranjan, Priya, 2003. "Consumption variety and urban agglomeration," Regional Science and Urban Economics, Elsevier, vol. 33(6), pages 653-661, October.

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