The integration of intrametropolitan office markets

A model of an integrated metropolitan land market with respect to office location is provided. The model combines aspects of production theory and utility theory in outlining the locational choices of the office-using sector. The mixed basis of the model arises from the possibility of factor intensity reversals in the office sector which allow locational choices. Empirical tests of some of the propositions of the model yield the supporting result of a city-size effect in the linkages between downdown and suburban office-location markets.

Univariate classification of differentiated international markets

Hotelling initiated the use of spatial analogies in assessing market differentiation. In this paper, this line is followed to analyze differentiated international markets. Most of the economies in the world are arrayed as if they are a continuum of points of demand. In this paper, this continuum of demand points is partitioned into homogeneous segments by use of a classification algorithm that minimizes within-group variation. The criteria used for classifying are two indicators of market overlap that have been suggested as important by the new trade theory, proximity of gross national product (GNP), and proximity of per capita GNP. Several of the derived market partitions are compared with other classifications of international markets in the form of existing and planned geographically discriminatory trade arrangements.

A financial-economic von Th�nen model

The von Th�nen model of agricultural land use is reformulated in this paper as an investment decision in which the objectives of farmers range from total risk-aversion to profit-maximization. By means of a variant of the mean-variance model of contemporary portfolio theory, it is demonstrated that individual bid-rent functions depend on the nature of a farmer's utility function. Because farmers' objectives affect their bid-rent functions, the spatial pattern of agricultural production is also affected. The conventional result of the von Thu�nen model is shown to be a special case of the more general portfolio model.

Distance effects in the demand for wildland recreational services: the case of national parks in the United States

Distance decay in spatial demand usually is taken as axiomatic. Thereare, however, a number of situations in which distance decay cannot betaken for granted. In recreational pursuits, for example, spatial interaction is often marked by a confounding distance effect in which nearby andmore distant destinations are equally attractive. The research reportedin this paper concerns an examination of the distance effect in the spatialdemand for a specific type of recreation: the use of national parks inthe USA. The paper contains a review of the related spatial demand literature, including the travel cost model used in calculating economic values of national parks and related places. A central-place-type model of parkuse is described and put into operation in the form of two linear spatialdemand models. One focuses on regional demand for park use and the otherfocuses on a national market. The initial model specifications are expandedin order to examine the drift of their distance parameters over two variables intended to quantify park quality: age and area. Empirical tests of themodels indicate distance decay in the demand for park use is pronouncedwhen distance is considered in the context of park quality.

A risk - return model for multiregion and multiproduct diversification of the firm

The purpose of this paper is to demonstrate that the integration of locational considerations into product-diversification planning has the potential of supplying gains to the firm by providing hedges against both product-portfolio and location-portfolio risk. An efficient diversification frontier to region - product strategic planning is generated from hypothetical data for purposes of illustration. Results of the analysis are in agreement with Wahlroos's theory of the diversification of the firm.