Coalition building in a spatial economy

Arbeitspapier

We analyze the possibility and consequences of coalition-formation amongst suppliers of retail services. We first provide a framework in which producers of Substitutes have an incentive to Cluster in market places in order to attract consumers dispersed in space. Owing to spatial externalities, the resulting spatial equilibrium can be welfare suboptimal. We characterize regimes in which we find too little and those in which there is too much agglomeration of firms. We analyze the role of coalitions of firms (e.g. initiated by a land developer) in this framework and show that such coalitions can overcome the suboptimality of the decentralized spatial allocation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tübinger Diskussionsbeiträge ; No. 117

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: General ; Oligopoly and Other Imperfect Markets ; Size and Spatial Distributions of Regional Economic Activity
• Subject: endogenous agglomerations ; monopolistic competition ; coalition building ; Einzelhandelsstandort ; Produktdifferenzierung ; Standorttheorie ; Agglomerationseffekt ; Monopolistischer Wettbewerb ; Koalition ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Henkel, Joachim ; Stahl, Konrad O. ; Walz, Uwe
• Event: Veröffentlichung
• (who): Eberhard Karls Universität Tübingen, Wirtschaftswissenschaftliche Fakultät
• (where): Tübingen
• (when): 1997

Further information

• Handle: http://hdl.handle.net/10419/104876
• Last update: 10.03.2025, 11:42 AM CET