On spatial equilibria in a social interaction model

Pascal Mossay () and Pierre Picard
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Pascal Mossay: School of Economics, Henley Business School, University of Reading, U.K.

No 2009063, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

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 geographical nature of the residential space tremendously affects 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.

Keywords: social interaction; multiple agglomerations; spatial economy (search for similar items in EconPapers)
Date: 2009-10-01
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: On spatial equilibria in a social interaction model (2011)
Working Paper: On spatial equilibria in a social interaction model (2011)
Working Paper: On spatial equilibria in a social interaction model (2010)
Working Paper: On Spatial Equilibria in a Social Interaction Model (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2009063

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