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Schelling’s model revisited: From segregation to integration

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  • Jiang, Ge

Abstract

Schelling (1969, 1971) presents a microeconomic model showing that the individual preferences can transform an integrated city into a rather segregated city, although no player prefers segregation. We study the impact of location heterogeneity on neighborhood segregation in the one-dimensional Schelling residential model. We model location heterogeneity by introducing an advantageous node, in which a player’s utility is impartial to the composition of her neighborhood. When every player interacts with two neighbors, we find that having one advantageous node in the circular city will lead to a result that segregation is no longer the unique long-run outcome. When players interact with more neighbors, more advantageous nodes are necessary to obtain the same result.

Suggested Citation

  • Jiang, Ge, 2021. "Schelling’s model revisited: From segregation to integration," Economics Letters, Elsevier, vol. 205(C).
    • Handle: RePEc:eee:ecolet:v:205:y:2021:i:c:s0165176521002305
    DOI: 10.1016/j.econlet.2021.109953
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    1. Glenn Ellison, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 17-45.
    2. Pancs, Romans & Vriend, Nicolaas J., 2007. "Schelling's spatial proximity model of segregation revisited," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 1-24, February.
    3. Zhang, Junfu, 2004. "Residential segregation in an all-integrationist world," Journal of Economic Behavior & Organization, Elsevier, vol. 54(4), pages 533-550, August.
    4. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-493, May.
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