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    Externalites associated with anchor stores

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    Some real estate economists have argued that anchor stores (such as Macy's and Bloomingdales) in shopping malls create significant externalities for overall sales. Comment on the nature of this externality, and suggest a policy/strategy to allow shopping malls to internalize this strategy.

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    Solution Preview

    In order to complete this assignment, I recommend that you read some articles on this subject. I found a couple on the Internet.

    CONTRACTS, EXTERNALITIES, AND INCENTIVES IN SHOPPING MALLS by Eric D. Gould, B. Peter Pashigian, and Canice J. Prendergast is available ...

    Solution Summary

    Strategy for internalizing positive externalities assoicated with anchor stores in shopping malls.