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Alonso's Discrete Population Model of Land Use: Efficient Allocations and Competitive Equilibria

Marcus Berliant () and Masahisa Fujita

International Economic Review, 1992, vol. 33, issue 3, 535-66

Abstract: In his 1964 book, W. Alonso proposed several concepts of land-use equilibrium in terms of discrete population. However, the so-called new urban economics has been concerned exclusively with continuous population models. It is the authors' belief that in order to develop logical foundations for continuous population models, it would be useful to go back to the original models of Alonso. In this paper, they focus on the additive land price model of Alonso and examine its solution characteristics. In particular, the authors demonstrate the existence and Pareto efficiency of equilibria and the supportability of efficient allocations through additive land price systems. Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1992
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Handle: RePEc:ier:iecrev:v:33:y:1992:i:3:p:535-66