Local Social Interaction and Urban Equilibria

Emmanuelle Augeraud-Véron, Francisco Marhuenda () and Pierre Picard

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

Abstract: In this paper we investigate the effect of local interaction in a simple urban eco- nomics model. Agents interact with others if and only if their interaction benefit outweights 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. Nu- merical analyses show that more localized interactions yield flatter population den- sity 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.

Keywords: social interaction; cities; spatial equilibrium. (search for similar items in EconPapers)
JEL-codes: R12 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-cdm, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hdl.handle.net/10993/41543 (application/pdf)

Related works:
Journal Article: Local social interaction and urban equilibria (2021)
Working Paper: Local social interaction and urban equilibria (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:19-17

Access Statistics for this paper

More papers in DEM Discussion Paper Series from Department of Economics at the University of Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by Marina Legrand ().