Local social interaction and urban equilibria

Emmanuelle Augeraud Veron, F. Marhuenda and Pierre Picard
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Emmanuelle Augeraud Veron: GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique
Authors registered in the RePEc Author Service: Emmanuelle Augeraud-Véron

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Abstract: In this paper we investigate the effect of local interaction in a simple urban economics model. Agents interact with others if and only if their interaction benefit outweighs their travel cost and therefore meet others only within finite geographic windows. We show that two or more cites may co-exist at the equilibrium provided that they are sufficiently distant. For any interaction surplus function, there exists a unique spatial equilibrium on not too large city supports. The population density within a city is determined by a second order advance-delay differential equation, whose solutions are fully characterized for linear interaction surplus functions. Numerical analyses show that more localized interactions yield flatter population density and land rents over larger extents of the city support. They do not give support to the idea that multiple subcenters can be caused by small and finite geographic windows of interaction. © 2021 Elsevier B.V.

Date: 2021-07
New Economics Papers: this item is included in nep-ure
Note: View the original document on HAL open archive server: https://hal.science/hal-03433039
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Published in Mathematical Social Sciences, 2021, 112, pp.72-83. ⟨10.1016/j.mathsocsci.2021.03.006⟩

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Related works:
Journal Article: Local social interaction and urban equilibria (2021)
Working Paper: Local Social Interaction and Urban Equilibria (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03433039

DOI: 10.1016/j.mathsocsci.2021.03.006

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