Abstract
This paper investigates optimal zoning of two managerial firms in an unconstrained linear city. Comparing with the case in which firms are not managerial type, the strategic delegation increases the incentives of one firm to locate farther from the rival. Then, a welfare function is introduced to highlight zoning regulation as an influential competition policy tool. Depending on the regulator's objective function and the timing of location choice, we provide a new mechanism that allows the regulator to attain the optimal locations of managerial firms and can lead to strong or weak competition.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
