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.     

EMERGENCE OF LEAPFROGGING FROM RESIDENTIAL CHOICE WITH ENDOGENOUS GREEN SPACE: ANALYTICAL RESULTS

Leapfrog development is a typical form of sprawl. This paper aims at analyzing the existence, size, and persistence of leapfrogging in a dynamic urban economic model with endogenous green amenities. We analyze whether incoming households choose to settle at the fringe of the city or to jump further away depending on their preferences and the structure of the city. We first provide an analytical treatment of the conditions and characteristics under which a first leapfrog occurs and show how the optimal choice is affected by the size of the city, income, commuting costs, as well as the size of the area where green amenities are considered. We then study how further leapfrogging and multiple urban rings may appear and be maintained in the long‐run equilibrium, and how infill processes take place through time.     

GRAVITY AND SPATIAL STRUCTURE: THE CASE OF INTERSTATE MIGRATION IN MEXICO*

ABSTRACT The estimation of gravity models of internal (aggregate) place‐to‐place migration is plagued with endogeneity (omitted‐variable) biases if the unobserved effects of spatial structure are not accounted for. To address this econometric problem, this paper presents a more general specification of the gravity model, which allows for (bilateral) parameter heterogeneity across individual migration paths—along with (unilateral) origin‐ and destination‐specific effects. The resultant “three‐way fixed‐effects” (3FE) model is applied for an analysis of interstate migration in Mexico based on cross‐sectional data. To overcome parameter‐dimensionality problems (due to limited or incomplete information), the 3FE model is estimated using the Generalized Maximum Entropy (GME) estimator. The empirical implications of this new modeling strategy are illustrated by contrasting the 3FE‐GME estimates with those for the traditional and two‐way fixed‐effects (2FE) models. The former are far more plausible and intuitively interpretable than their traditional and 2FE counterparts, with parameter estimates changing in expected directions. The (average) effect of the migrant stock is markedly smaller than usually estimated, providing a more realistic measure of network‐induced migration. Migration outflows from centrally located origins have significantly steeper distance decay. Path‐specific distance effects exhibit directional asymmetries and spatial similarities.     

Transportation Networks and the Location of Human Activities

The impact of transportation networks on the location of human activities is a surprisingly neglected topic in economic geography. Using the simple plant location problem, this paper investigates such an impact in the case of a few idealized networks. It is seen that a grid network tends to foster a dispersed pattern of activities, while the center of a radial network acts as an attractor. The case of two economies characterized by different network configurations that form a custom union is then analyzed. It is shown that the structural properties of the networks still hold, though some locations are pulled toward the common border. This suggests that no such relocation should be expected within the European Union if the state members endorse similar fiscal and social policies after the formation of the single market.     

Erosion Hazards and Efficient Preservation Measures in Prehistoric Cultural Layers in the Littoral of Lake Constance (Germany,Switzerland)

Many Neolithic and Bronze Age cultural layers and pile fields embedded in sediments at the shorelines of pre-alpine lakes in France, Switzerland, Germany, Austria, and Italy (in part UNESCO World Heritage Sites), are threatened by littoral erosion which is partly caused by human agency. Based on measurements of the wave field at four prehistoric sites on Lake Constance (Germany, Switzerland) we discuss the role of passenger ship navigation. We also review the stability and ecological compatibility of archaeological preservation control fills on the littoral platform of Lake Constance, and we make some recommendations for future preservation measures.     

Network Autocorrelation

Even though Cliff and Ord (1969) do not question "network autocorrelation," their paper contains an interesting ambiguity that is here discussed. Hence, this article aims at discussing the problem of spatial autocorrelation in (perhaps preferably on) a network as well as at giving an overview of the existing relevant literature. A typology of network autocorrelations is suggested and it is hoped that this discussion initiates debates and points to new research challenges.