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.     

Envisioning Future Landscapes in the Environmentally Sensitive Areas of Scotland

Environmentally Sensitive Areas (ESAs) designated under EC Structure Regulation 797/85 now cover 1.4 million ha of the Scottish countryside and are likely to make a substantial contribution to the regulation of landscape change. Visual changes to landscapes with (policy on) and without (policy off) the ESA programme in two Scottish ESA areas, Breadalbane and the Machair, are predicted through impact-assessment procedures and computer manipulation of photographic images. The methodological requirements for such predictions are outlined and substantial differences in landscape characteristics under policy on/off scenarios are revealed. Such approaches to landscape change are an essential foundation for the development of environmental cost-benefit analyses and will contribute to public consultation processes.     

Custom and habit(us): The meaning of traditions and legends in early medieval western Britain.

This paper discusses some well–known legends and hagiographic stories, and explores the context of their production and consumption. From an examination of Welsh foundation legends and Cornish hagiographical accounts, we focus on the methods by which versions of history were used in the Middle Ages to provide a context for fundamental changes in the way in which society was organised. It is found that, far from abandoning traditional versions of history, accounts of the past were promoted that sought to couch newer territorial notions of organisation within existing constructions of identity and mediations with the past. In an examination of the production and reception of these popular stories, we attempt to relate the legends to the generation of communal identity and memory. Consequently, drawing on Bourdieu's notion of habitus, we argue that pre–existing beliefs and customs were an important part in the development of newer institutional structures. Rather than initiating new practices that had no grounding in any particular past, institutional developments gained social currency by being inherently grounded in existing facets of cultural identity. In essence therefore, changing societal and institutional structures were unintentionally couched in the language and understandings of existing structures, so that in many ways a concept of continuity was at the very heart of actual change.     

Explaining accommodation and resistance to demands for independence referendums in the UK and Spain

This article examines why the UK Government accepted the 2014 Scottish independence referendum while the Spanish Government opposes a similar referendum in Catalonia. Adopting a most similar research design, we argue that the variation is best explained by perceived political opportunities by the two ruling parties. These are embedded in different conceptions of the state and constitutional designs, mostly mononational in Spain and mostly plurinational in the UK but multiple and contested in both cases. In Spain, vote‐seeking calculations incentivise the Popular Party to oppose a referendum, while its mononational conception of the state and the Spanish constitutional design provide a further constraint and a discursive justification for their position. In the UK, David Cameron's accommodating position was based on the view that the Scottish referendum was low risk – as support for independence was minimal – with a high reward: the annihilation of the independence demand. The Conservatives have recently adopted a more restrictive position because seeming political advantage has changed. The findings suggest that independence referendums will continue to be rare events.