Nonoptimal Ranking of Households in Urban Space: An Example

A Grimaud
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A Grimaud: Groupe de Recherche en Économie Mathématique et Quantitative, Université des Sciences Sociales de Toulouse, 31042 Toulouse, France

Environment and Planning A, 1989, vol. 21, issue 2, 257-263

Abstract: Because of the nonconvexity of location choice, economists generally use two steps to construct spatial equilibria in monocentric cities: first they rank agents from the center (using, for instance, bid price functions), then they allocate goods. This paper provides a simple example in which externalities lead to a nonoptimal ranking at equilibrium.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:21:y:1989:i:2:p:257-263

DOI: 10.1068/a210257

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