Part III elucidates the theoretical formation of a city system andanalyzes structural changes of a city system due to a reduction oftransportation costs. The mechanism of the change is explained by a flexible market area theory which studiesa city system by using the market areas established in the free-entry equilibrium.
ToshiharuIshikawa, Facultyof Economics, Chuo University, Tokyo, Japan
Part I Location theory of retailingindustry.- 1 Market areas of retailers in linear space.- 1.1 Formationmechanism of monopoly retailer’s market.- 1.2 Emergence of competition andcompetition styles.- 1.3 Equilibrium price and market established in linearmarket.- 2 Market areas of retailers in plane space.- 2.1 Shapes of marketborder between two retailers.- 2.2 Market area in spatial free entryequilibrium.- 2.3 Effects of variety of items on retailer’s market situation.-2.4 Effects of freight rate on items and market of shopping center.- 3 Marketanalysis by Contact Price Curve.- 3.1 Derivation of spatial free-entryequilibria.- 3.2 Analysis of spatial free-entry equilibria by using contactprice curve.- Part II Location theory of manufacturing industry.- 4 Change offactory’s production in agglomeration.- 4.1 Formation of industrialagglomeration.- 4.2 Relationship between number of factories and agglomerationeconomies.- 4.3 Spatial departure of production processes from agglomeration.-5 Location theory of factory in the globalized world.- 5.1 Factory’s locationin the globalized world.- 5.2 Derivation of the profit function of a firm.- 5.3Settlement of location prospective area.- 5.4 Firm’s profits and revenues ofcountries in different corporation tax rates.- 5.5 Location power of thecorporation tax and the interest rate.- 5.6 Effects on factory’s location ofindustrial park and industrial complex.- Part III Location theory of citysystem.- 6 City systems built on basis of economic activity.- 6.1 City systemsconstructed on basis of market area theory.- 6.2 City system built by usingcities’ production functions.- 6.3 Change of city system in the real world.- 7Analysis of city system by using cities’ land rents.- 7.1 Assumptions andframework of analysis.- 7.2 Land rent and capital amount in city.- 7.3 Analysisof Land rents and production amounts of cities in city system.- 7.4 Influencesof change of freight rates and production efficiency on cities.- 8 City systemas a location factor.- 8.1 Role of city system in firm’s decision making oflocation.- 8.2 Numerical index of characteristics of city system.- 8.3Estimation of social health of prefectures in Japan.- 8.4 Relationships betweencity system and prefecture’s performances.- 8.5 City system as a locationfactor.- Appendix.- References.