Bulletin n. 0/2004 | ||
December 2004 | ||
Takahashi Takaaki |
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Spatial competition of governments in the investment on public facilities | ||
in Regional Science and Urban Economics , Volume 34, Issue 4 , 2004 , 455-488 | ||
I study competition of the governments that make a decision on the investment in their public facilities, which yield an excludable good with nonrivalry. Special attention is paid to their strategic interaction, their spatial relationship, an opportunity to exploit third party regions, and a discrete nature of some of their choices. Their decision making process is analyzed as a two-stage game in a model of a linear economy. I characterize equilibria and discuss welfare implications. | ||