An optimal size for rural tourism villages with agglomeration and congestion effects
Helping to sustain a viable rural sector, rural tourism enjoys public support in many countries. We claim that due to congestion and agglomeration externalities in the rural accommodation market, public support should be integrated into a broader local development policy that regulates the number of accommodation units in one locality. To demonstrate this, we extended an equilibrium model that accounts for product differentiation and oligopolistic competition to address congestion and agglomeration effects, and applied it to data collected in northern Israel. We show that, under the prevailing policy measures, the number of accommodation units can exceed the optimal one, leading to loss of welfare. , Oxford University Press.
Year of publication: |
2012
|
---|---|
Authors: | Tchetchik, Anat ; Fleischer, Aliza ; Finlkeshtain, Israel |
Published in: |
European Review of Agricultural Economics. - European Association of Agricultural Economists - EAAE, ISSN 1464-3618. - Vol. 39.2012, 4, p. 685-706
|
Publisher: |
European Association of Agricultural Economists - EAAE |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
An optimal size for rural tourism villages with agglomeration and congestion effects
Tchetchik, Anat, (2012)
-
An optimal size for rural tourism villages with agglomeration and congestion effects
Tchetchik, Anat, (2012)
-
Is agriculture an important componenet of rural tourism?
Fleischer, Aliza, (2002)
- More ...