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G19-O3 Location of Economic Activity

Tracks
Ordinary Sessions
Thursday, August 31, 2017
11:00 AM - 12:30 PM
HC 1312.0007

Details

Chair: Dieter Pennerstorfer


Speaker

Dr. Petra Luetke
Post-Doc Researcher
University of Muenster

Local socioeconomic practices of temporary urban economies

Author(s) - Presenters are indicated with (p)

Petra Luetke (p)

Abstract

Temporary urban economies such as mobile food vending have become well beloved parts of the urban landscape in many contemporary cities. In general mobile vending in public space is not new and it is existing for hundreds of years. Today a new generation of mobile food vending commonly occurs in urban areas and the recent rise in popularity of gourmet street food has brought renewed attention to mobile vending in urban and regional landscapes. On the one hand these Food Trucks or Food Carts are seen as a catalysts of urban revitalization representing food as the internal diversification of a postmodern society with variegated cultural expressions. On the other hand the temporary presence of these Trucks seem to be the booster of gentrification: Urban upgrading strategies, real estate investment decisions, altered demand-patterns and social displacement shape the transformation process. The dynamic local arrangements of the temporary socioeconomic practices of mobile food vending is embedded in spatial dynamics by creating ephemere spaces. The practices of everyday life in urban space and time force the interplay between local cultural models of order and socioeconomic practices. This paper reinterprets these transformations by conceptualizing urban socioeconomic practices that are not fixed but ephemere and regrounded from flows of people, practices and capital.
Prof Fu-chuan Lai
Full Professor
Academia Sinica

Spatial Cournot Competition in Two Intersecting Circular Markets

Author(s) - Presenters are indicated with (p)

Wen-Chung Guo, Fu-Chuan Lai (p)

Abstract

This paper analyzes the location equilibrium in two intersecting circular markets where two identical rms engage in Cournot competition. It is shown that each of the two
intersection points occupied by one of the rms is a location equilibrium. The intuition of our result is that by locating on the intersection points, rms can minimize their transport costs and avoid competition. Our nding coincides with the real world phenomenon that transport hubs may attract more rms and people.

Full Paper - access for all participants

Dr. Fadim Yavuz
Assist.Prof.Dr.
Necmettin Erbakan University

Evaluation of student perceptions regarding good university campus planning strategies

Author(s) - Presenters are indicated with (p)

Fadim Yavuz (p)

Abstract

Universities are institutions that provide city-society-student cooperation, educate individuals, earn profession for them and develop society. Universities are also actors who play an important role both in individual and social development as well as in the economic development and urban development of the region. The university is a significant source of received knowledge, a centre of culture & aesthetic shaping the civilized society. Universities, serving as permanent fixtures of the urban economy and built environment, also contribute to the economic health and physical landscape of cities. Universities, whether they are public or private, serve the public and yet they can also put a strain on city services and goodwill of their immediate neighbours.
The most important factor that effectively determines the relation of the university to the city is good planning and good environmental design. According to their location and campus planning and design strategies, the relationship of universities to the city differs. University campuses sometimes contribute to the development of the city by supporting social, economic and cultural life in the city, while in some cases they abstract themselves by using their physical walls.
The aim of the study is to understand the nature of campus space, which provides a well-planned & quality environment to the students and contribute to city’s built environment and economy. Necmettin Erbakan University Köyceğiz Campus in Konya is chosen as a case for the empirical study, for a questionnaire survey to reveal the student perceptions regarding its location and planning & design policies.
The results of this study measuring student perceptions of successful university campus planning policies are useful for urban planners and local managers in improving existing campuses and better designing future campuses.
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Dr. Dieter Pennerstorfer
Assistant Professor
University of Linz

All by mycellf: Using the AMOEBA approach to generate isolated markets

Author(s) - Presenters are indicated with (p)

Dieter Pennerstorfer (p), Christoph Weiss, Biliana Yontcheva

Abstract

For quite some time economists have analyzed the relationship between market size (such as population) and market structure (entry, exit and the number of firms in a market). Following the seminal contributions of Bresnahan and Reiss (1990, 1991) and Berry (1992) population entry thresholds have been calculated, showing that a disproportionately high increase in demand (population) is needed for an additional firm to enter, because the number of firms in a local market intensifies price competition and thus drives down profitability. The appealing feature of these models is that one can gain insight into the determinants of firm profitability and the intensity of competition with minimal data requirements. In order to ensure that measures of local population are close proxies for actual demand levels, both first and recent contributions (e.g. Collard-Wexler, 2014; Zang and Scott, 2016) restrict their analyses to isolated markets and focus only on towns without other settlements of relevant size nearby. In densely populated areas (which are common in most European countries) local markets typically overlap rather than being isolated spatial entities.

If the assumption of market isolation fails to hold, neighboring markets affect each other due to demand linkages and due to competitive pressures exerted by firms located in close proximity. Some of the existing empirical studies address the first issue by including explanatory variables (like information on neighboring towns or commuting patterns) to capture demand effects of nearby markets. The effect of the number of competitors in other nearby markets is ignored in virtually all empirical articles.

We take a step back and rather than looking for applicable ways to incorporate spatial spillover effects we aim at delineating local markets in a way which reduces the spillover effects altogether without restricting the sample to a (potentially non-representative) sub-sample of rural regions or isolated towns. We can draw on highly disaggregated spatial data covering the entire residential population of Austria, based on grid cells of 250 meters. We use the idea that local markets are spatial population clusters and apply a simplified version of the so-called AMOEBA-procedure developed by Aldstadt and Getis (2006) for identifying population clusters. We are able to show that entry threshold models for the food retailing industry applying our approach to delineating local markets increases the fit of the model and reduces the spillover effects between local markets compared to conventional market definitions.
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