On Spatial Equilibria in a Social Interaction Model

Pascal Mossay and Pierre Picard

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: Social interactions are at the essence of societies and explain the gathering of in- dividuals in villages, agglomerations, or cities. We study the emergence of multiple agglomerations as resulting from the interplay between spatial interaction external- ities and competition in the land market. We show that the geographical nature of the residential space tremendously a¤ects 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.

JEL-codes: A10 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
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:luc:wpaper:09-02

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