Optimal Zoning in Spatial Differentiation

Abstract: This study analyzes optimal zoning policy in a duopolistic spatial competition framework for both circular and linear spaces. A regulator is introduced in the third stage of the price-location game through a welfare function to model zoning preferences from firms and consumers. An equilibr...

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Autores principales:	Hamoudi,Hamid, Rodríguez,Isabel, Martín-Bustamante,Marcos Sanz
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2017
Materias:	Zoning spatial competition welfare function equilibrium results industrial policy.
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862017000100033
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spelling	oai:scielo:S0718-528620170001000332017-07-21Optimal Zoning in Spatial DifferentiationHamoudi,HamidRodríguez,IsabelMartín-Bustamante,Marcos Sanz Zoning spatial competition welfare function equilibrium results industrial policy. Abstract: This study analyzes optimal zoning policy in a duopolistic spatial competition framework for both circular and linear spaces. A regulator is introduced in the third stage of the price-location game through a welfare function to model zoning preferences from firms and consumers. An equilibrium outcome is then found for both spatial configurations. When the regulator is inclined to favor consumers (consumer-oriented) both firms are restricted to locate at one point to serve the whole market. Nevertheless, when the preferences of the regulator are biased towards firms (firm-oriented) the zoning area is maximized, with both firms being located at the market boundaries. The equilibrium outcome confirms location patterns found in real life situations under a non-neutral regulator.info:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.44 n.1 20172017-06-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862017000100033en10.4067/S0718-52862017000100033
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Zoning spatial competition welfare function equilibrium results industrial policy.
spellingShingle	Zoning spatial competition welfare function equilibrium results industrial policy. Hamoudi,Hamid Rodríguez,Isabel Martín-Bustamante,Marcos Sanz Optimal Zoning in Spatial Differentiation
description	Abstract: This study analyzes optimal zoning policy in a duopolistic spatial competition framework for both circular and linear spaces. A regulator is introduced in the third stage of the price-location game through a welfare function to model zoning preferences from firms and consumers. An equilibrium outcome is then found for both spatial configurations. When the regulator is inclined to favor consumers (consumer-oriented) both firms are restricted to locate at one point to serve the whole market. Nevertheless, when the preferences of the regulator are biased towards firms (firm-oriented) the zoning area is maximized, with both firms being located at the market boundaries. The equilibrium outcome confirms location patterns found in real life situations under a non-neutral regulator.
author	Hamoudi,Hamid Rodríguez,Isabel Martín-Bustamante,Marcos Sanz
author_facet	Hamoudi,Hamid Rodríguez,Isabel Martín-Bustamante,Marcos Sanz
author_sort	Hamoudi,Hamid
title	Optimal Zoning in Spatial Differentiation
title_short	Optimal Zoning in Spatial Differentiation
title_full	Optimal Zoning in Spatial Differentiation
title_fullStr	Optimal Zoning in Spatial Differentiation
title_full_unstemmed	Optimal Zoning in Spatial Differentiation
title_sort	optimal zoning in spatial differentiation
publisher	Universidad de Chile. Departamento de Economía
publishDate	2017
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862017000100033
work_keys_str_mv	AT hamoudihamid optimalzoninginspatialdifferentiation AT rodriguezisabel optimalzoninginspatialdifferentiation AT martinbustamantemarcossanz optimalzoninginspatialdifferentiation
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Optimal Zoning in Spatial Differentiation

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