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By Mary E. Edwards

Nature and Scope of nearby and concrete EconomicsRoots of Spatial EconomicsWhat makes up a Region?Classifying RegionsHow Does house impact conventional Economics?Plan of the BookAppendix: facts SourcesResearch QuestionsList of ReferencesPART I: marketplace parts AND enterprise situation ANALYSISLinear industry AreasFrom call for features to Price-Distance FunctionsDynamics of industry AreasPrice Elasticity of call for and Read more...

summary: Nature and Scope of local and concrete EconomicsRoots of Spatial EconomicsWhat makes up a Region?Classifying RegionsHow Does area have an effect on conventional Economics?Plan of the BookAppendix: facts SourcesResearch QuestionsList of ReferencesPART I: industry components AND enterprise position ANALYSISLinear marketplace AreasFrom call for features to Price-Distance FunctionsDynamics of marketplace AreasPrice Elasticity of call for and DistanceHotelling's Linear MarketsChallenging the main of minimal DifferentiationConsumer seek habit and company LocationSummary and ConclusionsChapter QuestionsResearch AssignmentsList of

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And M. Olsson. 2006. The identification of functional regions: theory, methods, and applications. The Annals of Regional Science 40 (1):1–18. Nature and Scope of Regional and Urban Economics & 17 Lane, T. 1993. Is there a future for regional science in economics? Annals of Regional Science 27 (3):285–293. Leung, Y. 1983. A linguistically-based regional classification system. In Measuring the Unmeasurable, editor-in-chief, Peter Nijkamp, co-editors, Helga Leitner, Neil Wrigley. Boston: M. Nijhoff 451–485.

When we include distance in the model, the only type of market structure that makes sense is the oligopoly. The main assumption of perfect competition is that many buyers and sellers of a homogeneous product act so that no one can influence price. This assumption is violated immediately when we consider spatial locations. Distance differentiates goods, and transport costs increase the price that the consumers pay. A dozen fresh eggs from the convenience store next door is not the same good to a hungry consumer as a dozen eggs from a farmer on the other side of the county.

In contrast, if the price of insulin drops, firms do not increase sales. Diabetics cannot consume more insulin and other patients will not substitute insulin for another prescription. Think About It. Look at a detailed map of your city or neighborhood. Pick out the locations of the following types of stores: 1. Convenience stores 2. Video stores 3. Gas stations 4. Large grocery stores 5. Used car shops 6. Major employers 7. Restaurants 8. Clothing and apparel stores Which stores cluster together and which stores are dispersed?

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