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ON THE VARIABLE SHAPE OF THE FREE SPATIAL DEMAND FUNCTION *
Author(s) -
Batten David
Publication year - 1988
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1988.tb01209.x
Subject(s) - convexity , consumer demand , function (biology) , variable (mathematics) , demand curve , transformation (genetics) , simple (philosophy) , key (lock) , nonlinear system , mathematical optimization , economics , econometrics , computer science , microeconomics , mathematics , mathematical analysis , physics , financial economics , biochemistry , chemistry , philosophy , computer security , epistemology , quantum mechanics , evolutionary biology , gene , biology
Analytical evidence is presented confirming variations in the shape of the free spatial demand function under different market conditions. For some simple spatial configurations of consumers, the transformation from convexity to concavity may be conveniently observed using graphical methods. The key criteria for concavity of the free spatial demand function are certain combinations of concave consumer demand, nonuniform consumer density, and/or nonlinear transportation costs. Although findings are confined to free spatial demand, similar variations may be expected to hold for the competitive case.