I would like to thank Jacob Glazer, Takatoshi Tabuchi, and an anonymous referee for useful suggestions. This research was supported by Yoshida Scholarship Foundation and the Japan Society for the Promotion of Science.
A MODEL OF SHOPPING CENTERS*
Article first published online: 17 OCT 2006
Journal of Regional Science
Volume 46, Issue 5, pages 969–990, December 2006
How to Cite
Arakawa, K. (2006), A MODEL OF SHOPPING CENTERS. Journal of Regional Science, 46: 969–990. doi: 10.1111/j.1467-9787.2006.00493.x
- Issue published online: 17 OCT 2006
- Article first published online: 17 OCT 2006
- Received: January 2005; Revised: October 2005; Accepted: March 2006.
ABSTRACT In this paper, we propose a model of developers' strategies for tenant mixes and the locations of shopping centers (SCs). Consumers have preferences for product variety, and tenants in the SCs sell differentiated goods. The consumers can choose two shopping behaviors: patronizing one or both of the two SCs. We show that if the consumers have strong preferences for product variety, the SCs agglomerate to free-ride on the rivals' product varieties, and the consumers patronize both SCs. On the other hand, if consumer preferences are weak, the SCs locate at different locations, and the consumers patronize one of the two SCs.