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Two-dimensional Geographical Position as a Factor in Determining the Growth and Decline of Retail Agglomeration

Author

Listed:
  • Aizawa, Hiroki
  • Kono, Tatsuhito

Abstract

We investigate where retail stores agglomerate in a road network with radial roads and a ring road in a two-dimensional space. Per-distance travel cost on the radial roads can be different from that on the ring road. The transition of the two-dimensional agglomeration patterns of retail stores is investigated with decreases in the travel costs. Results show 1) a difference in improvement sequences in the radial and ring roads generates a difference in the agglomeration patterns with different welfare levels and 2) how the two-dimensional geographical position of shopping agglomerations ensuring the highest welfare level differs from that in equilibrium.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:112274
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    References listed on IDEAS

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    More about this item

    Keywords

    Agglomeration; Bifurcation; Monopolistic competition; Two-dimensional road network;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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