Optimal Facility Location in a One-Dimensional Spatial Market

This paper analyzes properties of the optimal spatial arrangement of what may be interpreted as a class of public facilities. Optimality is defined as cost minimization. Three different optimality criteria are considered, and for each, the necessary and, sufficient conditions, market area size, and production levels, are derived. The relationship between optimal production levels and number of facilities needed is also considered. Next the results of implementing various pricing strategies are analyzed with emphasis given to marginal and uniform pricing. It is shown that, given certain conditions, all facilities incur operating deficits, given marginal pricing. Estimates on the level of the deficits are derived in terms of location rents. Finally, in the appendix, several important results from other studies are derived as special cases of the basic model.     

ZONE PRICING*

ABSTRACT. Our purpose is to study a spatial price policy often encountered in the real world, known as zone pricing. This price policy consists in determining simultaneously several delivered prices together with the geographical zones in which they apply. It is shown that zone pricing approximates perfect spatial price discrimination and that the firm's profit increases with the number of zones. Furthermore, the number of markets supplied by the firm rises with the number of zones. Finally, zone pricing is compared to other standard spatial price policies and possible extensions are discussed.     

PRODUCT DIFFERENTIATION,PRICING POLICY AND EQUILIBRIUM*

ABSTRACT. This paper studies the price-location equilibrium of duopolists supplying differentiated goods and competing in a spatial market with elastic demand. We show that a price-location equilibrium exists under all three pricing policies traditionally considered by the literature: f.o.b. mill, uniform delivered, and spatially discriminatory pricing. We also show that firms always cluster at the market center. The second part of the paper studies the endogenous choice of pricing policy. A surprising feature of the resulting equilibrium is asymmetry. The greater the extent to which the goods are substitutes, the more likely is it that one firm will choose f.o.b. pricing and the other price discrimination. Finally, the welfare consequences of the analysis show some interesting trade-offs.     

SPATIAL ASYMMETRIC DUOPOLY WITH AN APPLICATION TO BRUSSELS' AIRPORTS*

ABSTRACT In this paper, the problem of a city with access to two firms or facilities (shopping malls, airports, commercial districts) selling a differentiated product (shopping, flights) and/or offering a differentiated workplace is studied. Transport connections to one facility are congested. A model is presented for this asymmetric duopoly game that can be solved for a Nash equilibrium in prices and wages. A comparative statics analysis is used to illustrate the properties of the equilibrium. A numerical model is then applied to the two Brussels airports. Three stylized policies are implemented to address the congestion problem: expansion of transport capacity, congestion pricing, and a direct subsidy to the uncongested facility. Our results indicate that the degree of intrinsic differentiation between the two firms is crucial in determining the difference in profit and market share. Price and wage differences also depend on trip frequency and consumer preferences for diversity. Congestion pricing is the most effective policy tool but all three options are shown to have attractive attributes.     

SPATIAL PRICING IN INTERDEPENDENT MARHETS*

ABSTRACT. Conditions for spatial price equilibrium are derived for a set of firms in oligopolistic spatial competition, distributed at fixed locations in a heterogeneous region where consumer purchasing patterns are a probabilistic function of the price distribution rather than a deterministic function of proximity to firms. The resulting prices vary with accessibility to consumers or with the degree of local spatial monopoly, and result in non-zero profits for firms. Conditions describing the existence and stability properties of this spatial price equilibrium are defined, and are shown to be equivalent for two different hypotheses concerning disequilibrium pricing behavior: a partial price adjustment model and a Bertrand game. For two different profit goals, total profit maximization and profit rate maximization, it is shown that a spatial price equilibrium exists and is at least locally quasi-stable.     

High-tech development and spatial planning: comparing the Netherlands and Taiwan from an institutional perspective

High-tech development has been broadly accepted as a prominent matter of regional development policies and plans at the global level. Strategies to enhance it have evident implications for spatial planning policies, plans and visions. Consequently, careful attention should be paid to the role that spatial planning policies play in the national and regional efforts to advance high-tech development in a particular place. This study addresses the relationship between the spatial planning system and high-tech development, searching to explain the spatial implications resulting from this relationship. It approaches the topic by comparing high-tech development experiences in the Netherlands and Taiwan from an institutional perspective. Although both countries have used a range of spatial strategies for economic growth through high-tech development, the results show that their different institutional settings, power relations between different levels of government and conceptions of science park have led to the implementation of two very distinct spatial strategies, shaping different spatial patterns of high-tech development clustering in these two regions. The findings demonstrate the potential of the institutional approach to study international planning issues, and contribute to theories of high-tech development and spatial planning.     

Spatio-temporal localization of New Zealand dairying

Changes in the localization of dairy farming in New Zealand are interpreted in terms of environmental advantages, inter-regional competition, transportation costs and policies, and the behaviour of cooperative dairy companies. Since the 1920s dairying has become increasingly localized in environmentally advantaged areas. Competition among dairy companies resulted in o ver-extension of supply areas and disequilibrium between collection costs and economies of scale at the plant. Subsequently, some rationalisation of supply areas has occurred, notably since the adoption of tanker collection from the 1950s with cooperative dairy companies using differential transport pricing policies to discourage suppliers at the spatial margins.     

RECURSIVE ALGORITHMS FOR THE ELIMINATION OF REDUNDANT PATHS IN SPATIAL LAG OPERATORS*

ABSTRACT. Recursive algorithms for the elimination of redundant paths in spatial lag operators are introduced. It is shown that these algorithms have superior computational properties in comparison with the cumbersome procedure proposed by Ross and Harary (1952). A rigorous definition of spatial lag operators is given, while a number of mathematical results and properties are derived. Theoretical and empirical results regarding the performance of the proposed algorithms are presented.     

Internationalizing the Spatial Identity of Cross-Border Cooperation

The adoption of Schengen Agreement and acceleration of cross-border region building among European Union (EU) member states have considerably diversified the character of identity policies in European border areas. One important outcome is the formation of different spatial identities for improving the policies of cross-border cooperation. Using the formation of internationalized spatial identity of North European twin cities Haparanda (Sweden) and Tornio (Finland) as study example, this article argues that the promoters of cross-border cooperation still pay little attention to the strategic planning and coordination of identity policies. As a result, the promotion of an international spatial identity of cross-border cooperation remains unbalanced failing adequately to support the aims of cooperation policies. The ineffective integration between cooperation policies and international identity of cooperation complicates the building of competitive and dynamic cross-border regions in the EU peripheral areas as well as responding to challenges of EU's territorial cohesion.     

A Spatial Price Determination Model for Multi‐Market Heterogeneously Distributed Resources: An Application to Forestry Markets in Sweden

The spatial dimension is a key paradigm in price determination, as attested by recent studies in the literature that highlighted the differential in market behavior between spatial and non‐spatial pricing settings. In this paper, we develop a model of spatial pricing for multi‐market heterogeneously distributed resources, with an application to the Swedish forestry sector. The focus of the model is to estimate the impact of spatial interaction on the demand for resources in terms of resource allocation, competition, and pricing. In its core, the pricing mechanism relies on a supply–demand framework. Using disaggregated data at the gridcell level for forest feedstock supply and harvesting costs in Sweden, we construct regional supply curves for each gridcell assuming a maximum transportation distance to delimit the potential market. Demand nodes are exogenously determined and are adjusted using a distance‐decay model to assess demand pressure across locations. We apply the model empirically to assess the impact on forest feedstock prices of a 20 TWh increase in biofuel production.     

兰州城区制造业空间结构及其影响因素研究

基于2008年企业的相关数据,以兰州城区行政区划中街道为空间单元,通过对兰州市制造业企业的宏观总量空间分布、行业类型分布、企业规模分布的分析,探寻该市内部制造业的空间结构特征及规律,并从影响企业区位选择的因素入手,分析现有制造业空间结构的影响因素。研究表明:无论从宏观总量空间分布、行业类型分布、企业规模分布来看,兰州城区制造业企业空间结构由内到外都呈现明显的圈层分布特征;这种空间分布特征是在历史因素、土地因素、城市规划和政府政策、集聚效应、开发区等多重影响因素和驱动力的共同作用下形成的。     

HEDONIC PRICING WHEN HOUSING IS ENDOGENOUS: THE VALUE OF ACCESS TO THE TRANS‐ISRAEL HIGHWAY*

Standard hedonic house pricing assumes that house prices are independent of the intangible to be priced. A methodology is proposed in which the supply as well as the demand for housing depends on the intangible. The methodology is applied to value access to the Trans‐Israel Highway (TIH). Using spatial panel data (2002–2008) we show that TIH had two effects on the housing market. It increased house prices in locations with greater access to TIH, and it affected housing construction. Standard hedonic pricing would have underestimated the value of access because it ignores the effects of housing construction on the intangible to be priced. House prices began to increase three years before TIH was inaugurated, but housing construction did not anticipate the inauguration of TIH.     

BAYESIAN MODEL AVERAGING IN THE CONTEXT OF SPATIAL HEDONIC PRICING: AN APPLICATION TO FARMLAND VALUES

ABSTRACT Specification uncertainty arises in spatial hedonic pricing models because economic theory provides no guide in choosing the spatial weighting matrix and explanatory variables. Our objective in this paper is to investigate whether we can resolve uncertainty in the application of a spatial hedonic pricing model. We employ Bayesian Model Averaging in combination with Markov Chain, Monte Carlo Model Composition. The proposed methodology provides inclusion probabilities for explanatory variables and weighting matrices. These probabilities provide a clear indication of which explanatory variables and weighting matrices are most relevant, but they are case specific.     

UNIFORM SPATIAL PRICING

ABSTRACT Uniform spatial pricing means that a firm delivers its product to any customer at a fixed price, independent of location. Economic theory explains the use of uniform pricing by the added profit generated by absorbing freight charges of distant customers. I extend this insight by demonstrating that when demand elasticity and transportation cost are positively enough correlated, uniform pricing generates higher profits than mill pricing. I show that this result can better explain observed patterns of price policy choice by mail order and web firms. A second result is application of this idea to firms with many shipping facilities.     

PRICING POLICY REACTIONS TO AGGLOMERATION IN A MARKET WITH SPATIAL SEARCH*

ABSTRACT. Price dispersion (variation) and agglomeration are common characteristics of spatial markets, in particular, markets with imperfect consumer information and search. However, pricing and location strategies in these markets are not well analyzed since spatial search is difficult to model without restricting the spatial dimension of the problem. This paper analyzes pricing and location strategies in a market with spatid search using a probabilistic modeling strategy that does not restrict search patterns in the plane. Specifically, the analysis considers the pricing strategy of an isolated firm in response to the agglomeration of competing firms. Results indicate that spatial and temporal price dispersion are effective responses to competitors'agglomeration. However, the relative effectiveness of these strategies varies with market conditions. In addition, agglomeration can have some counterintuitive effects. This paper also provides insights into existing theories of spatial search and spatial competition in spatially-restricted (linear and circular) markets.     

Regional and transnational spatial planning1: problems today,perspectives for the future

This introductory contribution presents some results of the EURBANET project, dealing with European urban networks in the framework of the INTERREG IIC programme of the North‐western Metropolitan Area (NWMA). This project was conducted between 2000 and 2001 by researchers of Delft University of Technology, the University of Glasgow, the University of Dortmund, the Catholic University of Leuven and the University of Nijmegen. The central objective of the EURBANET project was to explore the role of polynucleated urban regions in the reinforcement of the competitive strength and quality of life in the NWMA, as a contribution to transnational spatial planning in the NWMA. Four polynuclear urban regions are involved: Randstad Holland, the Flemish Diamond, the RheinRuhr Area and Central Scotland (Glasgow‐Edinburgh region). One of the conclusions is that it is necessary to move between scales: from the European Union to national spatial policies (and vice versa), between national policies and regional spatial policies and between regional and urban spatial policies. At each scale, specific demands for spatial planning policies in polynuclear urban regions are becoming increasingly relevant. This is a challenge for spatial policies and policy domains like infrastructure policy, transport policy, housing policy, economic and environmental policy. We present an analysis of how polycentricity has become central to recent discussions on European and north‐west European spatial and economic planning. We launch a spatial network approach to integrate spatial policies. These wide perspectives contrast heavily with the current less satisfactory practice of spatial planning on the level of urban networks and transnational governance.     

Urban revitalization in the Netherlands: Current trends versus actual policies

The paper focuses at the discrepancy between actual urban policies and current spatial socio‐economic developments. Three discrepancies are discussed: homogeneous concepts versus developments directed at heterogeneity; economic seduction policies versus comprehensive developments; and small‐scale policies versus higher level developments. Basic to the current spatial trends is the evolution of a large‐scale urban network. This results in a less hierarchical urban structure and a heterogenization of economic centres and living areas which occurs both within and between urban places. Because of this, the steering possibilities of hierarchic organized urban policies are hampered. In contrast to these developments, urban policy in the Netherlands has a hierarchical nature and focuses heavily on the traditional dominant urban nodes. The present phase of policy, ‘urban management’, illustrates this. An adaption of the spatial framework of policy is needed. The paper also shows that present policies haue a too narrow economic perspective which leads to an underestimation of present and future problems related to the labour and housing market. A plea is made for an explicit dynamic approach to urban revitalization in which the normative and instrumental function is stressed. Moreover, the suggested distinction between efficiency and equity is rejected The article is based on a survey of current trends and future research needs under the authority of the Advisory Council for the Programming of Future Directions in Spatial Research in the Netherlands.     

吉林省人口密度空间格局演变及其形成机制

本文运用集中指数、趋势面分析和空间自相关等方法对1990年代以来吉林省49个行政单元的人口密度空间格局演化及其形成机制进行分析。结果表明:吉林省人口密度以集中式发展为主,在空间上呈现"中间高,两边低"的纵向分布特点;2000年以来人口密度空间分布不均衡性进一步加剧,是吉林省人口密度空间格局变化的转折点。吉林省人口密度空间格局演变机制主要缘于自然环境、经济发展水平、交通格局、政策因素和历史基础等方面。     

Fluvial spatial taphonomy: a new method for the study of post-depositional processes

Traditional taphonomic analyses do not consider the emergent properties resulting from the relationship of variables. Several of these emergent properties are expressed spatially. Here, we present a spatial taphonomic approach to the understanding of post-depositional processes affecting experimental assemblages modified by fluvial currents. Spatial statistical methods are a great tool to understand how different taphonomic variables relate at a spatial scale. The results of the application of this method to bone assemblages affected by low- and high-energy flows show the loss or modification of most of the original spatial taphonomic relationships. It also shows the degree of bone loss according to element, anatomical section and bone structure, and shape types. Anisotropy is identified in both experimental contexts. These results add new criteria to assess the impact of water flows in bone assemblages and contribute to define the properties of lag assemblages.     

European Union Competition Policy and the European Territorial Cohesion Agenda: An Impossible Reconciliation? State Aid Rules and Public Service Liberalization through the European Spatial Planning Lens

The territorial and spatial planning impacts of European Union (EU) economic and competition policies have remained under-researched in the field of European spatial planning, in contrast to other EU policy fields. This briefing explores how two elements of the EU competition policy, the regulation of “state aid” and the liberalization of “services of general interest (SGI)”, have significant implications for the pursuit of the objective of territorial cohesion through spatial planning and territorial development policies at different scales. The paper first reviews the development of the concept of territorial cohesion in the EU discourse and policy agenda since the mid-1990s, as well as the contribution of public services (Services of General Interest, or SGI in EU jargon) to it. It, then, reviews how the EU state aid rules and liberalization policies affect the state's ability to intervene (i) in support of sub-national territories which are lagging behind or suffering decline, and (ii) in the provision of public services across the national territory, specifically in peripheral regions or areas where the provision is not catered for by the market. The conclusion of the paper outlines the additional challenges to the pursuit of territorial cohesion in the EU posed by the post-2008 economic crisis and suggests avenues for future research.