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Technological linkages and efficient location of indivisible activities: Koopmans-Beckmann and Von Thünen unified

Masahisa Fujita and Jacques Thisse

No 1992043, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Consider a model à la Koopmans-Beckmann involving two indivisible and interactive firms, as well as a continuum of workers. Firm 1 uses labor, while firm 2 uses labor and good 1 produced by firm 1; both goods 1 and 2 can be exported their output but good 1 cannot be imported. The land capitalization process, based on workers' competition on a perfectly competitive land market, is used to design a noncooperative game betwccn firms 1 and 2. The equilibria of this game always exist and are socially optimal. Various extensions of the basic model are also discussed.

Date: 1992-08-01
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Journal Article: Technological Linkages and Efficient Location of Indivisible Activities: Koopmans - Beckmann and von Thunen Unified (1993) Downloads
Working Paper: Technological linkages and efficient location of indivisible activities: Koopmans -Beckmann and Von Thünen unified (1993)
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