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Inhabitants attraction by fees Source: Using fees as instrument of competition the solutions shows results depicted in Figure The output delivered by municipal enterprise of municipality 1 depends on its own fee and that of the competing municipal enterprise 2.
This condition prevails although for enterprise 2. Therefore, a sequence of optimal price settings according to the cost coverage condition and the utility function of the management of the enterprises follow for given prices of the competitor.
They can be transmitted into a P1, P2 diagram. The highest output is achieved and a best number of inhabitants are achieved where the VX response lines cross. The worst situation of this competition is where the VW response lines cross.
There are 14 other solutions leading to different inhabitant attractions. This model assumes cost coverage policy of the municipalities, if the municipalities vary the cost coverage conditions in the direction of profits to be realised by the public enterprises then the response curves of the X, M, and L type move outwards in the P 1, P2 diagram and that of the W type shifts inwards.
Then, the possibilities of inhabitant attractions by public enterprise competition become less with the first three management types. If the municipalities allow for losses the reverse development can be expected. Even a change of managers in order to hire X-type managers can intensify the inhabitant competition activities.
A city might concentrate on the settlement of rich older pensioners by developing special surroundings and environment, by promoting health services and sports fields and pools for elderly people, by promoting special public transport, and by promoting industries that takes advantage of older but highly qualified labour.
A city might try to attract such inhabitants to decrease integration costs. Other cities try to attract students and youngsters who will later create new firms in the core city although losing some to the first or second ring communities.
Various reasons like rising income of people active in service industries, changing social behaviour to individualism, decreasing number of children and family size, influx of people from overseas, higher environmental desires, etc. This demand is considered by developers and construction firms and supported by privatization of municipally or sale of cooperatively owned houses.
As a result, land prices and rents increase. Many citizens and families start to look for a residence outside the city.
There, new housing areas develop. In addition, those industries not closely linked to the CBD start to move to the surrounding villages and towns. The core city loses inhabitants. The influx of newcomers from the countryside or other regions, mostly families with no children, does not compensate the losses in particular if a nationwide population stagnation or decrease takes place.
People from overseas with low incomes and low demand for comfort migrate to the core city causing integration problems, which lead to further moves of the native population out of the core city.
In particular, those families with children try to move. Location price sensitive business leaves too and retailers serving the new inhabitants settle in surrounding communities belonging to two rings. A three ring structure develops consisting of the core city, the first ring towns and the second ring communities.ap lang synthesis essay calendar why do we study history essay proailurus lemanensis descriptive essay capulet and montague feud essay writer research paper on.
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