THE EFFECTS OF ZONING IN SPATIAL COMPETITION

ABSTRACT This paper considers a location model to illustrate the effect of zoning on competition. A planner is in charge of designing a city in a circular space where firms and consumers are located on different sides. With this type of market configuration, equilibrium in location under concave transport costs is proved. Then, a welfare function with different weights attached to consumer and firm surpluses is introduced to highlight zoning regulation as an influential competition policy tool. Depending on the regulator's political profiles and the demand, it is shown that zoning can lead to strong, weak, or moderate competition.     

PRICE UNCERTAINTY AND PRODUCTION-LOCATION DECISIONS UNDER FREE ENTRY OLIGOPOLY*

ABSTRACT. This paper departs from earlier work on location theory under uncertainty by considering an oligopoly case where the symmetric Cournot-Nash equilibrium of imperfectly competitive and identical firms are examined. It will be shown that once a Cournot competitive equilibrium is introduced, the demand function plays a central role in the choice of location, and the effects of changes in fixed costs, mean product price and price variability on the firm's optimum location and output are independent of absolute and/or relative risk aversion. These striking results are in sharp contrast with the well-known results obtained in previous contributions to the location literature.     

Long–Run Industry Equilibrium Under Demand Uncertainty: The Locational Effect of Business Taxes

This paper departs from previous work on the locational effects of business taxes under uncertainty by considering the attainment of long–run industry equilibrium. A general m input, planar–space production location model is adopted, and each individual firm is assumed to face random industry demand. I provide some interesting results which are contrary to those proposed by previous studies in the single–firm context and the relative impact of various business taxes.     

LOCATIONAL SIGNALING AND AGGLOMERATION

Agglomeration can be caused by asymmetric information and a locational signaling effect: The location choice of workers signals their productivity to potential employers. The cost of a signal is the cost of housing at that location. When workers' marginal willingness to pay for housing is negatively correlated with their productivity, only the core‐periphery (partially stratified) equilibria are stable. When workers' marginal willingness to pay for housing and their productivity are positively correlated, there is no core‐periphery equilibrium. The urban wage premium is explained when there is a core‐periphery equilibrium. Furthermore, location can at best be an approximate rather than a precise sieve for high‐skill workers.     

CAPITALIZATION OF LOCAL AND REGIONAL ATTRIBUTES INTO WAGES AND RENTS: DIFFERENCES ACROSS RESIDENTIAL,COMMERCIAL AND MIXED-USE COMMUNITIES*

ABSTRACT. The extent to which the value of locational attributes is capitalized into wages rather than rents is analyzed in a general equilibrium framework. This paper differs from earlier work by taking into account local and regional attributes and makes distinctions among residential, commercial, and mixed-use communities. The theory implies that in localities with both individuals and firms, wages and rents are simultaneously determined, while in exclusively residential localities the model is recursive. The major theoretical insights are consistent with estimations of the model using data from the University of Michigan's Panel Study of Income Dynamics.     

ARE LOCAL MILIEUS THE KEY TO INNOVATION PERFORMANCE?*

ABSTRACT This study investigates how local milieus foster innovation success in firms. We complement the common practice of linking firm performance indicators to regional characteristics with survey evidence on the perceived importance of locational factors. While the former approach assumes that location characteristics affect all firms in the same way, the survey allows us to model how firms judge the attractiveness of locations using a heterogeneous set of criteria. It turns out that the availability of highly skilled labor and the proximity to suppliers matter for firms' innovation performance. Interestingly, location factors obtained from the survey provide a more accurate explanation of how local milieus facilitate innovation.     

4. “KEEP THAT WOMAN OUT!” NOTIONS OF SPACE IN TWENTIETH‐CENTURY FLEMISH WITCHCRAFT DISCOURSE

This article considers the importance of a spatial dimension for witchcraft research, which has so far been largely neglected. In twentieth‐century Europe people in certain regions still considered their world in terms of witchcraft; they attributed misfortune to bewitchments and usually blamed their neighbors. Here a part of Flemish‐speaking Belgium is investigated with the help of legend texts collected in the 1960s. The witchcraft discourse that informed these texts did not just contain formulations of space; sometimes it also determined how people negotiated space. In this part of Flanders, witchcraft was embedded in Roman Catholicism; monasteries were the favored destinations of all those who considered themselves or their family members bewitched. In order to find cures for bewitchments people undertook hazardous journeys of considerable distance and found their efforts hindered by the witch they sought to counteract. The measures against evil influences that they were given were meant to consolidate the boundaries between their own (private) space and the (outside) space where witches roamed. Bewitchments were generally blamed on women. In the contemporary patriarchal social order, both public and domestic spaces were nearly always under men's control. This is why bewitchment was caused less by transgressions of male‐defined boundaries than by infringements of bodily spaces such as by eying or touching somebody else's children. This suggests a different approach to female space based on notions of proximity.     

Conflict and collusion in the British sugar industry, 1924 to 1928

An examination of the historical geography of the U.K. beet sugar industry from 1924 to 1928 with special reference to the inter-relationships of the different firms in making location decisions. The account is based principally on evidence from formerly confidential documents which became available for public consultation in the early 1970s. The behaviour of the firms is explored within their contemporary technological and task environments. The locational decisions are seen as part of a locational game in four rounds: absorption, conflict, collusion and aftermath. Various strategies for preserving corporate space from competitors are outlined.     

A GENERAL FRAMEWORK FOR THE INTEGRATION OF A LAND-USE MODEL WITH A TRANSPORTATION MODEL COMPONENT

Integrated land-use—transportation models are characterized as models in which the redistributive effects of one subsystem upon the other are explicitly defined and incorporated into the model's structure. At the core of integrated models is a linking procedure whose function is to transform the outputs of one model component into inputs for the other. Despite major efforts made in the past to build operational large scale integrated models, the structural properties of such models remain largely unexplored. This paper describes a general framework for an integrated model consisting of prototype model components. These are an iterative activity allocation model of the Garin-Lowry type, an equilibrium-assignment transportation network model, and a linking procedure. Given the level of analysis, this framework is shown useful for exploring the analytics of integrated models and, in particular, their equilibrium properties. By means of many simulation experiments based on an hypothetical numerical example, the operation of the model is demonstrated with an emphasis on the locational interpretation of the integration procedure. On the basis of the empirical results and considering the model's intrinsic assumptions, the following major findings can be cited. First, the effects of nontravel factors (such as basic employment and zonal attractions) upon activity distribution are stronger than effects caused by changes in the transportation system. The latter effects were found to yield nonlinear and, spatially, nonuniform changes in activity location which also tended to be larger in peripheral regions. Second, implicit in the specification of the integration procedure are behavioral assumptions regarding time-lags in locational adjustments made by activities in reaction to rising cost of travel. The present formulation implies that once located, activities do not revise their locational decisions despite substantial increases in travel costs. At the other extreme, all activities are permitted to readjust their locational preferences after the final interzonal travel costs are derived. The effect upon activity distribution of the latter specification is, of course, larger than that of the former, although less than the effect yielded by changes in nontravel factors. Regarding the equilibrium properties of the integrated system, both the theoretical and empirical analyses show that the entire model will converge into an equilibrium solution and that the corresponding trip patterns are also at equilibrium. These results will hold as long as the operation of the integrated models is completely controlled by the generation functions of the land-use model and the transportation model component only affects the spatial distribution of activities. Finally, the results from the simulation experiments indicate that the computed mean travel cost parameter tends to stabilize around a certain value as the level of demand for travel, within the system, rises. There is evidence that compensating changes in the location and composition of this demand are the main causes of this phenomenon. In light of these findings, it is possible to point to three key problems whose resolution could largely improve the predictive power of integrated models. First, it would be useful to define activity models in which the generation of activities is, among other things, a function of travel conditions. Second, currently formulated integrated models do not contain trip demand functions and, thus, demand for travel by an activity unit is regarded as completely inelastic. Third, different locating activities respond differently—over time and space—to changíng travel conditions, and models should, therefore, reflect explicitly such differences in activity behavior. A recent paper by Los [14], is an important contribution to the analysis of this issue.     

High-Tech Firms’ Location Considerations within the Metropolitan Regions and the Impact of Their Development Stages

The determinants of firms' location choice have changed over time, in particular in the high-tech industry. Few studies that investigate the factors that influence firms' location decision distinguish between firms in their early stages of life cycle and more established high-tech firms. This study identifies the considerations prioritized by high-tech firms in both categories in the process of choosing a location within a metropolitan region for establishing or relocating their business. The intra-metropolitan competition for high-tech plants was examined using data gathered through field surveys of managers of such firms in the Tel-Aviv metropolitan region. The findings shed light on the importance ascribed to internal and external factors in the decision on location made by the firms' managers.     

Löschian Spatial Competition in an Emerging Retail Industry

Löschian competition is traditionally thought to lead to a spatial equilibrium in which firms enter an industry and disperse across geographic space until each firm earns insufficient excess profit to attract net new entrants. This paper assesses the appropriateness of Löschian analysis using video (movie) rental establishments in Toronto as a case example. The video rental business, as we know it today, began to take shape around 1980 and has since seen much turnover. The paper describes the changing pattern of single‐site and chain stores between 1982 and 1999. I use logistic regression to predict the survival of existing establishments. Using survivorship as a proxy for profit, the paper draws conclusions about the extent to which temporal changes in video store location correspond to the tenets of Löschian competition. The coexistence of chain and single‐site stores suggests that there are distinct market niches and that single‐site stores have used a “swarming” strategy to compete against chains. Conclusions are drawn about how the retail sector might evolve in the future because of the locational competition between chains and single‐site stores.     

SPATIAL COMPETITION À LA COURNOT: PRICE DISCRIMINATION BY QUANTITY-SETTING OLIGOPOLISTS*

In this paper, we consider oligopolistic competition in a spatial model when firms take care of goods' delivery and discriminate among consumers. Firms compete by setting quantity schedules independently over space. We show that under general conditions a Nash equilibrium in this game exists and is unique. In equilibrium, firms’ markets overlap, a feature which accords with intuition and empirical observations. Over the interval between two firms, the equilibrium spatial price schedule is quasi-concave (quasi-convex) when transport costs are concave (convex). With linear transport costs, the model predicts uniform delivered pricing. Uniform pricing could moreover be obtained by a combination of increasing returns to volume in transportation together with concavity of unit transport costs in distance.     

THE “INS” AND “OUTS” OF HISTORY: REVISION AS NON‐PLACE

Revision in history is conventionally characterized as a linear sequence of changes over time. Drawing together the contributions of those engaged in historiographical debates that are often associated with the term “revision,” however, we find our attention directed to the spaces rather than the sequences of history. Contributions to historical debates are characterized by the marked use of spatial imagery and spatialized language. These used to suggest both the demarcation of the “space of history” and the erasure of existing historiographies from that space. Bearing these features in mind, the essay argues that traditional, temporally oriented explanations for revision in history, such as Thomas S. Kuhn's Structure of Scientific Revolutions, miss the mark, and that a more promising line of explanation arises from the combined use of Michel Foucault's idea of “heterotopias” and Marc Augé's idea of “non‐places.” Revision in history is to be found where writers use imagery to move readers away from rival historiographies and to control their movement in the space of history toward their desired vision. Revision is thus associated more with control than with liberation.     

A SPATIAL COMPETITION APPROACH TO CENTRAL PLACE THEORY: SOME BASIC PRINCIPLES*

ABSTRACT. This paper investigates the potential offered by the model of spatial competition for the study of central place theory. We consider n firms selling m substitutable or complementary goods to a continuum of consumers evenly distributed along a linear segment. Consumers have the same income and the same utility function which is quadratic in the goods supplied by the firms and linear in the numeraire. The main results are as follows. (1) In any location equilibrium in which all goods are consumed everywhere, each good supplied by a single firm is sold at the market center. In Christaller's terminology, this means that when the exhaustive principle holds in equilibrium, highest-order goods are made available at the center. (2) When all goods (excluding the numéraire) are complements to each other and each good is sold by a single firm, there always exists an equilibrium in which all the firms locate coincidentally. (3) If the stores selling a given good are under the control of a single owner then, in any equilibrium for which the exhaustive principle holds, the stores are located in a way such that the total transport cost (borne by consumers) is minimized.     

“UNABLE TO RESIST”: ON THE “POSSIBILITY” OF “IMPOSSIBILITY” AND CHRISTOPHE BOUTON'S TIME AND FREEDOM

This essay reflects critically on Martin Heidegger's remarks about authenticity and death with the aid of Christophe Bouton's Temps et liberté (2002), translated by Christopher Macann as Time and Freedom (2014). It first raises general questions concerning the possible thematic relationship between human endeavoring (action) and the experiences of finitude and freedom. Heidegger's Being and Time is particularly useful for exploring this relationship, but certain problems emerge when using this text for accessing the essay's themes. To wit: there are good reasons for mistrusting readings of Being and Time as a “practical” guide for grounding action. Against the practical reading, the essay wishes to reclaim the ontological‐existential significance of Heidegger's text. Although Bouton's treatment of Being and Time excludes its ontological dimensions and is entirely practical, even to the point of disregarding certain theoretical risks inherent in this approach, Bouton's study is indispensable for situating Being and Time in a historical‐intellectual context, whereby the experiences of freedom and time are understood within certain metaphysical presuppositions rendering them difficult to establish together on reliable grounds. Following Bouton's lead, the essay shows that the hermeneutic differences between practical and ontological readings of Being and Time can be explored through reflections on what Heidegger might have meant by the term “Möglichkeit” (“possibility”), from which Bouton infers “freedom.” It is alleged that Bouton does not fully consider all of Heidegger's assertions regarding Möglichkeit, most problematically the claim that the human being's most essential “possibility” is its “impossibility,” that is to say, its death.     

“Every Iraqi's Nightmare”: Blogging Peace in Occupied Baghdad

Abstract: The importance of war blogs is increasingly acknowledged, but their political dimensions remain largely unexplored. This paper provides a series of critical readings of Riverbend's Baghdad Burning and addresses two main issues. First, there is a systematic tension between the ways in which Riverbend is “subalternized” (by her readers and herself) and her attempts to reclaim the ground upon which post‐invasion Iraq is represented. Second, the invasion has fundamentally reworked the ways in which the figure of the “Iraqi” is constructed. These epistemological and ontological processes are always complex and partial: they occur at a variety of geographical scales and they are mobilized by a diversity of actors, making it very difficult to pin them down in time and space. Nevertheless, they highlight the difficulties of reducing Riverbend's project of resistance to a simple act of speaking out: of telling the reader what life is “really like” in occupied Baghdad.     

Location Equilibrium for Cournot Oligopoly in Spatially Separated Markets

Consider a two-stage non-cooperative Cournot game with location choice involving n≥ 2 firms each with several facilities. There are m≥ 2 spatially separated markets constituting the vertices of a network. Each firm first selects the locations of their facilities and then selects the quantities to supply to the markets to maximize its profit. There exists a Nash equilibrium in the quantities offered by each firm at the markets. Furthermore, when the demand in each market is sufficiently large, each firm chooses to locate its facilities only at vertices. With linear demand in each market, there exists a Nash location equilibrium.     

HOUSEHOLD LOCATION AND RACE: A 20‐YEAR RETROSPECTIVE*

ABSTRACT In research conducted some 20 years ago, we elucidated the starkly lower suburbanization propensities of black households in the Washington, D.C. metropolitan area. The paper showed that simulated closure of large socio‐economic gaps between blacks and whites did little to diminish prevailing high levels of residential segregation or otherwise enhance moves by black households to areas of educational, employment, and housing opportunity. Some two decades later and in the wake of significant urban evolution, this paper assesses anew racial variations in residential location choice. Results of the multinomial logit (MNL) analysis indicate large, persistent racial differentials in intrametropolitan residential location choice. While black location choice in 2000 was relatively more dispersed than in 1980, it remained remarkably concentrated in D.C. and Prince George's County. As in our prior analysis, results showed that large simulated gains in black economic and educational status had little effect on prevailing racial segregation. These findings underscore the ongoing, limited access of black households to schooling, employment, and homeownership opportunities available outside traditional areas of settlement. In marked contrast, the locational choices of Latino and immigrant households bore greater similarity to those of whites and were more sensitive to improvements in socio‐economic status.     

INTERDEPENDENT BEHAVIOR WITH RELOCATION COSTS: THE COMPARATIVE STATICS OF SPATIAL HISTORY*

Relocation costs are a form of sunk costs because they are relevant to new entrants, not to agents at their existing locations. With sufficiently high relocation costs, initial (historically given) locations and other conditions determine the equilibrium assignment of agents to locations. Comparative static results depend on initial conditions, i.e., history matters and historical persistence can be characterized. The model suggests empirically-relevant results which can be tested by collecting data on relocation and transportation costs. For example, appropriate levels of these costs imply that suburbanization always occurs with the entry of new firms. Sequential entry strategies may be adopted by existing firms which earn pure profits. This may be contrasted with traditional NUE models which predict changes in the boundaries of central zones.