On the Strategic Community Development

CEPR Discussion Paper Series No. 1550

Posted: 18 Mar 1997

See all articles by Jacques-François Thisse

Jacques-François Thisse

Catholic University of Louvain (UCL); Centre for Economic Policy Research (CEPR)

Date Written: January 1997

Abstract

This paper examines strategic behavior 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 behaviors. In low-income communities housing consumption is subsidized once lots are priced. In high-income communities housing consumption is generally taxed.

JEL Classification: H7, L13, R51

Suggested Citation

Thisse, Jacques-François, On the Strategic Community Development (January 1997). CEPR Discussion Paper Series No. 1550. Available at SSRN: https://ssrn.com/abstract=4745

Jacques-François Thisse (Contact Author)

Catholic University of Louvain (UCL) ( email )

Place des Doyens 1
Louvain-la-Neuve, 1348
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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