Optimal transportation policy with strategic locational choice

Article Abstract:

A simple model that incorporates one public facility and duopolistic private firms was used to determine the optimal locational strategies of firms in relation with a fixed public facility. The results show that firms do not locate optimally in the quartiles of an urban area due to the market area effect, regardless of transportation cost. The market failure due to the choice of suboptimal locations may be corrected with transportation taxes or subsidies. To preserve an optimal spatial structure, transportation taxes should be raised or subsidies should be reduced as transportation costs decrease.

Models, Urban economics, Transportation planning, Industrial locations, Industrial location

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Duopoly with spatial and quantity-dependent price discrimination

Article Abstract:

Both location and quantities affect the efficiency of discriminatory pricing in competition. Calculations are better achieved through non-linear spatial pricing with downward sloping demand. Linear spatial pricing is only efficient when consumers buy zero or one unit. With non-linear delivered pricing, quantities are the same as that of marginal cost pricing. In this method, the socially optimal locations are an equilibrium of the firm's location game.

Research, Price discrimination, Duopolies, Spatial systems, Direct costing, Delivered pricing

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Fiscal competition and regional differentiation

Article Abstract:

Economic competition between regions for external investors is beneficial for the regions, as it results in regional differential of infrastructure services. This association between economic competition and regional differential is explored. Horizontal differentiation, regional development, etc. are also discussed.

United States, Forecasts, trends, outlooks, Competition (Economics), Forecasts and trends, Market trend/market analysis, Regional development, Regional disparities (Economics)

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