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Two-dimensional Geographical Position as a Factor in Determining the Growth and Decline of Retail Agglomeration

Aizawa, Hiroki and Kono, Tatsuhito (2022): Two-dimensional Geographical Position as a Factor in Determining the Growth and Decline of Retail Agglomeration.

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Abstract

We investigate where retail stores agglomerate in a road network with radial roads and a ring road in a two-dimensional space. Per-distance travel cost on the radial roads can be different from that on the ring road. The transition of the two-dimensional agglomeration patterns of retail stores is investigated with decreases in the travel costs. Results show 1) a difference in improvement sequences in the radial and ring roads generates a difference in the agglomeration patterns with different welfare levels and 2) how the two-dimensional geographical position of shopping agglomerations ensuring the highest welfare level differs from that in equilibrium.

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