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| Format: | Artículo científico |
| Language: | en |
| Published: |
Universidad de Chile
2017
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| Online Access: | https://www.redalyc.org/articulo.oa?id=22152910002 |
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Table of Contents:
- Optimal Zoning in Spatial Differentiation Hamid Hamoudi Isabel Rodríguez Marcos Sanz Martín-Bustamante Economía y Finanzas Zoning welfare function industrial policy spatial competition equilibrium results This study analyzes optimal zoning policy in a duopolistic spatial competition framework for both circular and linear spaces. A regulator is introduced in the third stage of the price-location game through a welfare function to model zoning preferences from firms and consumers. An equilibrium outcome is then found for both spatial configurations. When the regulator is inclined to favor consumers (consumer-oriented) both firms are restricted to locate at one point to serve the whole market. Nevertheless, when the preferences of the regulator are biased towards firms (firm-oriented) the zoning area is maximized, with both firms being located at the market boundaries. The equilibrium outcome confirms location patterns found in real life situations under a non-neutral regulator. 2017 artículo científico 0304-2758 https://www.redalyc.org/articulo.oa?id=22152910002 en http://www.redalyc.org/revista.oa?id=221 Estudios de Economía application/pdf Universidad de Chile Estudios de Economía (Chile) Num.1 Vol.44