Reduction of transaction cost through spatial planning for optimum site selection in urban public centers (Case study: fruit and produce market in district five of Tehran)

Reduction of transaction cost through spatial planning for optimum site selection in urban public centers (Case study: fruit and produce market in district five of Tehran)

Abstract

Spatial planning is one of the powerful means for the reduction of transaction costs in the transportation sector.
Using this approach one can design and determine optimum of urban land use as well as cut down the traveling demand to different places and thereby achieve the reduction of transactions cost.
In this paper, though implicitly, we have tried to present and demonstrate a method for reducing demands through site selection land use and economic impact analysis.
The results of this study have been applied to a fruit and produce market in the district five of Tehran municipality. Finally the costs of the reduction of transactions arising from traveling demand have been calculated.
JEL Classification: D13.

Keywords

fruit and produce market

site selection land use

Transaction cost

traveling demand

weber problem