Green zoning regulation under price discrimination

Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu

卷:35

关键词: spatial discrimination;    duopoly;    zoning;    environmental effects;   

DOI  :  10.18045/zbefri.2017.1.151

来源: DOAJ

【 摘 要 】

This study aims to examine urban zoning within a linear city in a Bertrandduopolistic competition framework with price discrimination and lineartransportation costs. It analyses the effects of introducing an environmental areawhere economic and residential activity are not allowed. The welfare function usedto determine the optimal size of the green area allows for a possible regulator’sbias in favour of firms/consumers. It is shown that location-price competition canbe either reduced or increased depending on the size of the green area. The resultsindicate when a regulator implements green zoning, under linear transportationcosts, influences the optimal location of firms (because these locations depend onthe size of the green zone). In consequence, zoning may be used as an effectiveindustrial or urban policy tool.

【 授权许可】

Unknown