END 301 Lecture Notes - Lecture 12: Complementary Good, Environmental Quality, Central Place Theory
11 Jul 2016
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A firms location ~ wage + total transport cost. As distance from the center increases, wage and ctg. Gordon, richardson, yu, 1998: jobs have been decentralizing as transport costs have declined, depending on types of firms and activities. Market sensitivity: sales and services, accessibility to consumers. Distribution and size of markets ~ consumer range + market threshold. Consumer range: distance consumers are willing to travel, varies for different types of goods. Market threshold: sales volume to make profit. Focuses on goods movement opposed to worker movement. As transportation costs have declined, no longer adequate predictor. Simple solution: buffer between a polluter and its potential victims. Combining pollution tax and zoning: place polluters in industrial zones, exposure could be controlled, also imposing a tax, pollution could be reduced, combination reduce 2. Traditional zoning confining retailers to special zones. Complex approach giving retailers more location options, enforcing performance standards for parking.
