MILL PRICING AND SPATIAL PRICE DISCRIMINATION MONOPOLY PERFORMANCE AND LOCATION WITH SPATIAL RETAIL MARKETS*

ABSTRACT. Most of the monopoly spatial price discrimination literature explicitly assumes uniform population density over space. It also implicitly assumes that firms (plants) are spatially isolated from each other with production and retail points that coincide in location. While departures from these assumptions have been explored separately in the literature, it remains to examine performance and location when these assumptions are relaxed simultaneously. What emerges in this paper is a model where density functions approximate a pair of cities isolated from other cities. Each city has its own retail market, while the location of a single production or wholesale point is determined by characteristics of the two markets. Comparisons of mill pricing and spatial price discrimination found in the spatial monopoly literature can be interpreted as special cases of the more general framework provided here.     

Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe

This paper explores the location strategies of multinational enterprises (MNEs) from emerging countries (EMNEs) in search for regional strategic assets. The analysis is based on a systematic comparison between EMNEs and multinationals from advanced countries (AMNEs) in order to unveil similarities and differences between these two major sources of foreign investment into the regions of the European Union. The empirical results suggest that EMNEs follow a distinctive logic in their location strategies. They are attracted by the availability of technological competences only when their subsidiaries pursue more sophisticated and technology-intensive activities. Conversely, EMNEs share some behavioural similarities with AMNEs in their response to the spatial agglomeration of investments.     

长江三角洲城市旅游空间结构形成的产业机理——基于旅游企业空间区位选择视角

长江三角洲城市旅游企业空间布局状况对城市旅游增长极与城市旅游核心-边缘空间结构的形成具有重要影响。长江三角洲城市旅游空间一体化发展及城市旅游核心区与边缘区的协同发展目标的实现,旅游企业空间区位选择费用最小化行为是一种重要的实现推动力。旅游企业在城市旅游核心区或边缘区的布局是旅游企业在固定成本与旅游接待人次两种因素之间博弈的过程。旅游企业选择在城市旅游空间集聚区还是在非集聚区布局取决于在集聚区获得集聚经济的程度、集聚区产生的集聚不经济程度及非集聚区土地等成本的差异等。     

ON THE IMPACT OF LABOR MARKET MATCHING ON REGIONAL DISPARITIES*

ABSTRACT We propose a model where imperfect matching between firms and workers on local labor markets leads to incentives for spatial agglomeration. We show that the occurrence of spatial agglomeration depends on initial size differences in terms of both number of workers and firms. Allowing for dynamics of workers' and firms' location choices, we show that the spatial outcome depends crucially on different dimensions of agents' mobility. The effect of a higher level of human capital on regional disparities depends on whether it makes workers more mobile or more specialized on the labor market.     

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.     

Spatial Pricing Policies Reconsidered: Monopoly Performance and Location

This paper reexamines the welfare implications of three pricing regimes (mill, uniform, and discriminatory) for a monopoly. Assuming linear demand and constant marginal costs, I show that with the introduction of endogenous location choice, uniform delivered pricing may provide the highest social welfare when demands in different markets are sufficiently heterogeneous; whereas discriminatory pricing always dominates uniform pricing when demands in different markets are similar.     

上海大都市区物联网产业集聚与空间演化

新兴技术产业的空间集聚与扩散对大都市区的空间结构有直接的影响,厘清新兴技术产业的空间分布和区位选择规律对新兴产业集群培育和大都市区空间结构调整都具有重要的政策意义。本文分析了上海市物联网企业的空间分布和集聚特征,结果发现初创期物联网企业在郊区集聚,随后向郊区其他区域扩散,并呈现出从单极向多极集聚转变的空间演化进程。通过构建负二项回归探究上海物联网企业的区位选择因素,结果表明制度因素和企业集聚效应对企业区位选择有重要影响。在产业发展初创期,企业区位选择受政府管制和市场机制双重影响,其中制度因素发挥了关键作用;而在随后的兴起期,产业集聚效应对新企业的入驻具有强大的吸引力。     

Competitive Location and Pricing on Networks

In this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market tvhere a competitor firm is already operating as a monopoly with several outlets. The entering firm seeks to determine the optimal uniform mill price and its servers' locations that maximize profits given the reaction in price of the competitor firm to its entrance. A tabu search procedure is presented to solve the model together with computational experience and an example.     

Competitive Location and Pricing on Networks

In this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market where a competitor firm is already operating as a monopoly with several outlets. The entering firm seeks to determine the optimal uniform mill price and its servers' locations that maximize profits given the reaction in price of the competitor firm to its entrance. A tabu search procedure is presented to solve the model together with computational experience and an example.     

Within‐industry agglomeration of occupations: Evidence from census microdata

This study uses worker‐level data on industry, occupation, and place of work to explore differences in the spatial properties of production, administrative, and R&D occupation groups within industries. To measure differences, we calculate location quotients at the local labor market level and the Duranton and Overman (2005) agglomeration index for each group. We find appreciable differences in the spatial distribution of occupation groups within most manufacturing industries, with R&D occupations consistently exhibiting the highest degree of spatial concentration. Our results are consistent with the core theoretical and empirical results in the agglomeration literature.     

Rural marketing in medieval Nottinghamshire

The data sources available for a study of medieval marketing are extremely limited. However, work in contemporary developing nations illustrates the existence of a detailed structure of periodic marketing. This paper draws cautious parallels between medieval Nottinghamshire and these contemporary patterns. It begins by reconstructing a possible set of markets for the fourteenth century; details of tolls and rents are mentioned in order to indicate the types of produce in circulation and some aspects of the practical functioning of the markets. The spatial and temporal characteristics of these markets are shown not to agree with either the trader or the consumer models of periodic marketing, although there is some evidence to suggest that markets taking place on the same day were generally not located in settlements that were close together. Taxation evidence suggests that a market did not always lead to a relative increase in the importance of a settlement. In addition markets appear to have been established by lords of widely varying social status. By the seventeenth century there had been a large reduction in the number of markets, and they had become essentially urban in character, primarily associated with the few main roads in the county.     

Accounting for Temporal Demand Variations in Retail Location Models

This article develops and calibrates a spatial interaction model (SIM) incorporating additional temporal characteristics of consumer demand for the U.K. grocery market. SIMs have been routinely used by the retail sector for location modeling and revenue prediction and have a good record of success, especially in the supermarket/hypermarket sector. However, greater planning controls and a more competitive trading environment in recent years has forced retailers to look to new markets. This has meant a greater focus on the convenience market which creates new challenges for retail location models. In this article, we present a custom built SIM for the grocery market in West Yorkshire incorporating trading and consumer data provided by a major U.K. retailer. We show that this model works well for supermarkets and hypermarkets but poorly for convenience stores. We then build a series of new demand layers taking into account the spatial distributions of demand at the time of day that consumers are likely to use grocery stores. These new demand layers include workplace populations, university student populations and secondary school children. When these demand layers are added to the models, we see a very promising increase in the accuracy of the revenue forecasts.     

Trade and the location of industries in the OECD and European Union

Trade and location theory identifies forces that could leadto locational dispersion (comparative advantage) or locationalconcentration (scale economies) in the face of globalizing markets,each with different consequences for specialization and theadjustment costs associated with integration. However, theseforces can play themselves out in very complex ways if locationalchange principally affects intermediate production. Moreover,effects of history may be important, if locational patternswhich exist prior to integration reflect either strong externaleconomies or, as we argue, strong institutionalized capacitiesto respond to more open markets. This could especially be thecase in the context of Europe, whose territories are generallyless specialized than the states of the USA. To see how thesedifferent effects are operating today, empirical measurementis required. Using a data set which allows changes in locationaldistribution of manufacturing industries in the OECD to be measured,we show that Europe does not seem to be ‘Americanizing’its economic geography. Many sectors are actually spreadingout in Europe, implying that the effects of history have remainedstrong up to this point. Specialization increases are weak inmost European economies as well. The OECD has a more complexpicture of spread and concentration. Some of the implicationsfor further research on agglomeration, intra-industry trade,and integration are brought out in the conclusion.     

FRAGMENTATION AND CLUSTERING IN VERTICALLY LINKED INDUSTRIES*

ABSTRACT This paper models the location of two vertically related firms in a low labor cost country and in a country with a large market. The upstream industry is more labor intensive than the downstream industry. We find that spatial fragmentation occurs for low values of the input‐output coefficient and intermediate values of the transport rate, particularly if the countries are very asymmetric in size. Otherwise, we obtain agglomeration either in the low cost country (when the transport rate is low) or in the large market (when the transport rate is high). Multiple agglomerated equilibria arise when the transport cost of the intermediate good is significant.     

Product Differentiation and Location Choice in a Circular City*

Abstract. The paper analyzes spatial competition among firms that sell substitute and/or complementary products. The firms first choose locations on the perimeter of a circular city and then compete in quantities (à la Cournot). Both linear and convex (quadratic) transport costs are considered. In general, multiple location equilibria are encountered. Complete agglomeration, partial agglomeration, and complete dispersion are possible. Convex (quadratic) transport cost substantially shrinks the set of equilibria obtained under linear transport cost. In general, the results obtained for a larger number of firms selling complementary products are strikingly different from those obtained under a duopoly.     

上海市购物中心的时空格局演化及影响因素

基于网络数据和地理信息数据,运用空间分析法和条件Logit模型,分析了上海购物中心的时空格局演化特征及影响因素。研究表明：(1)上海购物中心的空间布局经历了四个发展阶段。观察期内,其空间分布的轴线均呈东北—西南走向,整体布局趋向均衡。(2)上海购物中心具有全域分散化与局域集聚化并存的演化特征。中、外环附近的购物中心密度逐步提升,区县、街道的空间差异不断缩小。在城市不同方位上,则形成了一个核心集聚区、四个次级集聚区的空间组织结构。(3)市场需求、地租成本、交通可达性、政策规划、集聚因素对购物中心布局具有显著影响。随着时间推移,休闲资源和政策规划的影响有所减弱,购物中心倾向于从集聚发展中获益。     

中心城区金融服务业空间集聚过程与格局研究——以潍坊市奎文区为例

近年来金融服务业发展成为我国经济与地理领域学者关注的新热点。本文通过GIS空间分析和电信黄页统计模拟,对潍坊市中心城区奎文区金融服务业的集聚现状、空间演变趋势进行了实证研究,重点探讨了金融服务业集聚格局的形成过程及演变机制。结论指出:金融服务业空间高度集聚于中心城区CBD内(单核心),集聚主要受城市等级规模和政策推动的影响;较之非银行业(保险业、证券业和其他金融活动),银行业时空演变规律性更强,但总体都呈现"轴向扩散"、"楼宇主导"态势;演变过程和城市主导发展方向、城市功能转型相契合,空间表现为由非均衡向相对均衡发展的格局过渡。     

城市民族餐馆空间分布的区位选择及文化邻近性

民族餐馆是餐饮服务业的特殊形式，认识其行业性质及文化特性是理解民族餐馆空间分布的关键。本研究以郑州、开封和洛阳为案例，从市场区位选择、文化邻近、城市格局等多个维度，对城市民族餐馆分布进行了探索性分析。研究发现，城市民族餐馆分布在空间分布结构上呈等级扩散分布，其集聚核心大多位于城市传统商业服务业中心；商圈、大学、医院等人口密集区，是城市民族餐馆市场选择的重要区位。民族餐馆与城市商圈具有较高的空间重合度，与大学、医院等区位要素空间关系因城而异。商圈周边布局民族餐馆的概率较高；城市民族餐馆在少数民族居住生活区域高度集中，民族商业文化传统对民族餐馆分布具有向心集聚作用。本研究认为城市民族餐馆分布取决于城市发展格局、市场区位选择及文化邻近的综合作用，民族餐馆的分布概率因城市规模大小、区位地点差异及空间尺度而发生变化。     

Innovation and the Entrepreneurial State in Asia: Mechanisms of Bond Market Development

Abstract

Bond markets have expanded rapidly in emerging East Asian economies in recent years. Asian policymakers have played a pivotal role in this development. This process presents an interesting challenge to the developmental state literature associated with bank-based financial systems. We argue that it is best to understand the role of the state as an entrepreneurial state in the construction of these markets, focusing on institutional innovation in three mechanisms of state-led market infrastructure: national or local credit rating agencies, mortgage corporations and bond pricing agencies. National credit rating agencies rate the creditworthiness of debt in local currency. Mortgage corporations create markets in securitised housing loans. Bond pricing agencies put a value on illiquid debt instruments to enable mark-to-market portfolio management. Together, these three mechanisms constitute the core determinants of the market (demand for creditworthy products, supply of tradeable assets, and the fixing of a price to those assets). In so doing they influence the nature of market operations, producing outcomes very different from the free market ideal type. We also consider cross-country commonalities and variations in this general pattern.     

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.