On spatial equilibria in a social interaction model

A-Tier
Journal: Journal of Economic Theory
Year: 2011
Volume: 146
Issue: 6
Pages: 2455-2477

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Social interactions are at the essence of societies and explain the gathering of individuals in villages, agglomerations, or cities. We study the emergence of multiple agglomerations as resulting from the interplay between spatial interaction externalities and competition in the land market. We show that the geography of the spatial economy affects significantly the properties of spatial equilibria. In particular, when agents locate on an open land strip (line segment), a single city emerges in equilibrium. In contrast, when the spatial economy extends along a closed land strip (circumference), multiple equilibria with odd numbers of cities arise. Spatial equilibrium configurations involve a high degree of spatial symmetry in terms of city size and location, and can be Pareto-ranked.

Technical Details

RePEc Handle
repec:eee:jetheo:v:146:y:2011:i:6:p:2455-2477
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29