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Nonoptimal Ranking of Households in Urban Space: An Example

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  • A Grimaud

    (Groupe de Recherche en Économie Mathématique et Quantitative, Université des Sciences Sociales de Toulouse, 31042 Toulouse, France)

Abstract

Because of the nonconvexity of location choice, economists generally use two steps to construct spatial equilibria in monocentric cities: first they rank agents from the center (using, for instance, bid price functions), then they allocate goods. This paper provides a simple example in which externalities lead to a nonoptimal ranking at equilibrium.

Suggested Citation

  • A Grimaud, 1989. "Nonoptimal Ranking of Households in Urban Space: An Example," Environment and Planning A, , vol. 21(2), pages 257-263, February.
    • Handle: RePEc:sae:envira:v:21:y:1989:i:2:p:257-263
    DOI: 10.1068/a210257
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    Cited by:

    1. André Grimaud, 1990. "Boîte d'Edgeworth et théorie de la localisation," Revue Économique, Programme National Persée, vol. 41(3), pages 531-546.

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