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Market allocations of location choice: An example

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Abstract

The purpose of this paper is to make an example which, first, illustrates Starret’s Spatial Imposibility Theorem, when agents have free mobility; and second, allowes us to get a competitive equilibrium with transportation when agents move only if there is a noticeable difference in utilities that justifies the change of location.

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  • Josemari Aizpurua & Juan Miguel Benito & Javier Puértolas, 2003. "Market allocations of location choice: An example," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0304, Departamento de Economía - Universidad Pública de Navarra.
  • Handle: RePEc:nav:ecupna:0304
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    1. Tjalling C. Koopmans & Martin J. Beckmann, 1955. "Assignment Problems and the Location of Economic Activities," Cowles Foundation Discussion Papers 4, Cowles Foundation for Research in Economics, Yale University.
    2. Bryan Ellickson & William Zame, 2006. "A Competitive Model of Economic Geography," Studies in Economic Theory, in: Christian Schultz & Karl Vind (ed.), Institutions, Equilibria and Efficiency, chapter 8, pages 131-147, Springer.
    3. Edwin S. Mills, 1970. "The Efficiency Of Spatial Competition," Papers in Regional Science, Wiley Blackwell, vol. 25(1), pages 71-82, April.
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