Larger cities typically give rise to two opposite effects: tougher competition among firms and higher production costs. Using an urban model with substitutability of production factors and pro-competitive effects, I study the response of the market outcome to city size, land-use regulations, and commuting costs. For industries with low input shares of land, larger cities host more firms setting lower prices whereas for sectors with intermediate land shares larger cities accommodate more firms charging higher prices. Softer land-use regulations and/or lower commuting costs reinforce pro-competitive effects, making larger cities more attractive for residents via lower prices and broader product diversity.

中文翻译：

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竞争、土地价格和城市规模

大城市通常会产生两种相反的效果：企业之间的竞争更加激烈，生产成本更高。使用具有生产要素可替代性和促进竞争效应的城市模型，我研究了市场结果对城市规模、土地使用法规和通勤成本的反应。对于土地投入份额较低的行业，大城市拥有更多定价较低的企业，而对于土地份额中等的行业，大城市容纳更多定价较高的企业。更宽松的土地使用法规和/或更低的通勤成本加强了促进竞争的效果，通过更低的价格和更广泛的产品多样性使大城市对居民更具吸引力。