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Efficient Agglomeration Of Spatial Clubs

Author

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  • Oded Hochman

    (Dept. of Economics, Ben-Gurion University of the Negev)

Abstract

The literature on agglomeration has focused largely on primary agglomeration caused by direct attraction effects. Here we focus on secondary and tertiary agglomerations caused by a primary agglomeration. Initially, scale economies in the provision of club goods (CGs) lead each CG to agglomerate in facilities of a club. This primary agglomeration causes a secondary concentration of population around these facilities, which in turn brings about a tertiary agglomeration of facilities of different clubs into centers. The agglomeration of facilities occurs only if a secondary concentration of population takes place. We analyze in detail two specific patterns of agglomeration. One is the central location pattern in which the facilities of all clubs agglomerate perfectly in the middle of their joint market area. The second is a triple-centered complex in which the center in the middle of the complex consists of perfectly agglomerated facilities of different clubs, each with a single facility per complex. The other two sub-centers consist of facilities of different clubs, each with two facilities per complex. These sub-centers are closer to the middle of the complex than to the boundaries and their facilities form condensed clusters of facilities that may contain residential land in between the facilities.

Suggested Citation

  • Oded Hochman, 2009. "Efficient Agglomeration Of Spatial Clubs," Working Papers 0903, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:0903
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    File URL: http://in.bgu.ac.il/en/humsos/Econ/Workingpapers/0903.pdf
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    More about this item

    Keywords

    agglomeration; clubs; complex; collective goods; local public goods; indirect attraction;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • H4 - Public Economics - - Publicly Provided Goods

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