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Discussion Paper Details
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Full Details
Title: On the Strategic Community Development
Author(s): Vernon Henderson and Jacques-François Thisse
Publication Date: January 1997
Keyword(s): Land development, Strategic pricing, Tax Competition and Tiebout Model
Programme Area(s): Industrial Organization
Abstract: This paper examines strategic behaviour of developers who, through offering different public good packages and revenue/fiscal schemes, compete for residents who are differentiated by income. There is an endogenous determination of numbers and sizes of communities. Developers have an incentive to strongly differentiate their public good offerings. In terms of pricing strategies, developers exhibit sharply contrasting behaviours. In low-income communities housing consumption is subsidized once lots are priced. In high-income communities housing consumption is generally taxed.
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Bibliographic Reference
Henderson, V and Thisse, J. 1997. 'On the Strategic Community Development'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1550