Price discrimination in shopping center leases
Article Abstract:
Price discrimination evinced in shopping center rent differentials may be due to variations in tenant characteristics, rather than to differences in contractual provisions. Discrimination is made possible by re-leasing prohibitions and the lack of concurrent selling markets. Analysis shows that tenant characteristics such as default risk, median sales volume, rental liability variations and size of rental space, or scale economies, are robust determinants of leasing prices. Tenant heterogeneity thus accounts for a large part of rent differentials in shopping centers. Contractual provisions do not explain rental variations in the case of those favored by such discrimination. Rents are set in two stages: first, rental discounts are offered to established and reliable tenants; and second, contractual provisions determine the rents of all other tenants.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1992
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Gains from corporate headquarters relocations: evidence from the stock market
Article Abstract:
A study is conducted to determine investors' perceptions of the relative benefits and costs of spatial agglomeration. Specifically, the paper analyzes the impact of headquarters relocations on the price of stocks. For the study, 160 unconfounded announcements of headquarters relocations from 1966 to 1992 are evaluated. Results reveal a significantly positive market response to relocation announcements that are motivated by cost savings. This jives with the idea that technological innovations have enabled companies at less centralized locations to avail of the benefits arising from agglomeration economies. On the other hand, relocation announcements arising from managerial self-interest generate significantly negative abnormal returns.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1995
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Measuring welfare effects of "unbundling" financial innovations: the case of collateralized mortgage obligations
Article Abstract:
Collateralized mortgage obligations (CMOs) are mortgage-backed bonds that are considered innovative financial instruments because they can 'unbundle' an asset through the sale of its cash flows in several parts. A study of the benefits offered by CMOs was conducted to substantiate the proposition that market-extending innovations enhance welfare. Specifically, the effects of CMOs on the absolute and relative spreads between fixed-rate mortgage securities and similar treasury securities were quantified.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1992
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