The co-author Marta Risueño sadly passed away on 02/04/2008. This paper is dedicated to her memory.
THE EFFECTS OF ZONING IN SPATIAL COMPETITION
Article first published online: 18 DEC 2011
© 2011, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 52, Issue 2, pages 361–374, May 2012
How to Cite
Hamoudi, H. and Risueño, M. (2012), THE EFFECTS OF ZONING IN SPATIAL COMPETITION. Journal of Regional Science, 52: 361–374. doi: 10.1111/j.1467-9787.2011.00744.x
We thank Marcos Sanz Martín-Bustamante for helpful discussion, three anonymous referees, and Mark Partridge co-editor of this journal for helpful comments and suggestions. Any remaining errors are our own.
- Issue published online: 19 APR 2012
- Article first published online: 18 DEC 2011
- Received: November 2009; revised: August 2011; accepted: September 2011.
ABSTRACT This paper considers a location model to illustrate the effect of zoning on competition. A planner is in charge of designing a city in a circular space where firms and consumers are located on different sides. With this type of market configuration, equilibrium in location under concave transport costs is proved. Then, a welfare function with different weights attached to consumer and firm surpluses is introduced to highlight zoning regulation as an influential competition policy tool. Depending on the regulator's political profiles and the demand, it is shown that zoning can lead to strong, weak, or moderate competition.