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Spatial configurations, competition and welfare

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Abstract

Studies into the shapes of market areas abound and emphasize the hexagon as the optimal configuration. This paper demonstrates that a triangular or a square market area can be superior to a hexagonal one under certain behavioural conditions. Spatial configurations are evaluated on the basis of (1) the number of firms required to fill a given market area and (2) the level of welfare per unit area that these firms generate under alternative competitive conditions.

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Ishikawa, T., Toda, M. Spatial configurations, competition and welfare. Ann Reg Sci 24, 1–12 (1990). https://doi.org/10.1007/BF01579890

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  • DOI: https://doi.org/10.1007/BF01579890

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