Club Goods in the Modern Cities: Economic Analysis of Gated Communities

In the framework of this master diploma the spread reasons of gated (private/closed) communities in the modern cities are examined. These objects are considered as the main suppliers of club goods, acting as an alternative to the public provision of local public goods. The paper presents a comprehensive review of the literature, which discloses the basic socio-economic and political reasons of fencing in urban areas. The theoretical model based on the demand for safety as a key factor of gating spread is created. It was shown that, two issues have a closed and direct bearing on gated communities: the mirror image of tragedy of the commons, and the "race to the bottom" effects. In addition, conceptual analysis of gating in Moscow is conducted. The conclusions about the gating effects on the socio-economic development of cities are suggested.