OPTIMAL LEVEL OF COMMERCIAL ACCUMULATION WITH “MULTIPURPOSE SHOPPING” AND “MONOPOLISTIC COMPETITION&rdquo: AND ITS WELFARE ANALIYSIS

Abstract

  The hollowing out of urban center by development of suburban area in most local cities, has been brought to public attention. If that situation involves some technological externality, the economy is not optimal. In this paper, we concider monopolistic competition and consumers who can purchase many commodities at a one-stop shopping, which means agglomeration of retail stores. The following result we obtained: the mecahism of technological externalities, the relation between the size of commercial area and transportation cost, and an evaluation method about the benefit of a transportation improvement.