Multiple Markets and Spatial Agglomeration in a One Shopping Trip Model

Abstract

This paper analyzes a spatial competitive monopolistic model of agglomeration in which households make only one shopping trip per period, and there are several firms in each industry. The model is a version of a model by Fujita (1988), but unlike his, in this model no equilibrium mixed district is possible, and a number of firm districts may appear. It is shown that allowing several firms in each industry may lead to a Mall equilibrium or an equilibrium with multiple shopping centers.agglomeration, bid-rent, land use, residential district, firm district