Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/124478 
Year of Publication: 
2014
Series/Report no.: 
54th Congress of the European Regional Science Association: "Regional development & globalisation: Best practices", 26-29 August 2014, St. Petersburg, Russia
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion eff_x001B_ect generated by consumers seeking more opportunities, and the competition eff_x001B_ect. Firms' profi_x001C_ts increase (decrease) with the entry of local competitors when the former (latter) dominates. Downtown retailers swiftly vanish when the mall is large. A predatory but effi_x001E_cient mall need not be regulated, whereas the regulator must restrict the size of a mall accommodating downtown retailers.
Subjects: 
shopping behavior
retailers
shopping mall
spatial competition
monopolistic competition
JEL: 
D43
L81
R10
Document Type: 
Conference Paper

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