CIRJE-F-607 "Self-organizing Marketplaces"
Author Name Tabuchi, Takatoshi
Date January 2009
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Remarks Subsequently published in Journal of Urban Economics 66, 179-185, 2009.@
Abstract

Dynamics of retail firms in marketplaces is analyzed, assuming that firms compete within a marketplace as well as between marketplaces under monopolistically competition. The number, size, and location of marketplaces or edge cities are analytically obtained, which is hardly done in the previous literature. Furthermore, extending the model to a two-dimensional space, Christaller-Losch system of hexagonal market areas is analytically derived.