On spatial equilibria in a social interaction model

Pierre Picard and Pascal Mossay
Additional contact information
Pascal Mossay: Universidad de Alicante

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

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)
JEL-codes: R10 R12 R13 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-03
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (1)

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http://www.ivie.es/downloads/docs/wpasad/wpasad-2010-14.pdf Fisrt version / Primera version, 2010 (application/pdf)

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 (2009)
Working Paper: On Spatial Equilibria in a Social Interaction Model (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2010-14

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