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A Spatial-Discounting Theory of Interaction Preferences

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  • T E Smith

    (Regional Science Department, University of Pennsylvania, Philadelphia 19174, USA)

Abstract

In a variety of situations involving human interaction, actors compare alternative interaction opportunities in terms of their perceived distance or accessibility to opportunities within some relevant space of attributes. In this paper, a theory of interaction preferences is proposed in which actors implicitly discount potential opportunity interactions in terms of these perceived distances. This form of implicit discounting behavior is shown to be characterized by three general axioms of observable preference behavior. The special case of exponential spatial discounting is also characterized explicitly. In addition, conditions are established under which discounted preferences are representable by utility functions. Finally, the dependence of discounted preferences on the underlying configuration of distances is examined in depth.

Suggested Citation

  • T E Smith, 1976. "A Spatial-Discounting Theory of Interaction Preferences," Environment and Planning A, , vol. 8(8), pages 879-915, December.
    • Handle: RePEc:sae:envira:v:8:y:1976:i:8:p:879-915
    DOI: 10.1068/a080879
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    References listed on IDEAS

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    1. Martin J. Beckmann & James P. Wallace, 1969. "Evaluation of User Benefits Arising from Changes in Transportation Systems," Transportation Science, INFORMS, vol. 3(4), pages 344-351, November.
    2. Rader, Trout, 1972. "Theory of Microeconomics," Elsevier Monographs, Elsevier, edition 1, number 9780125750509.
    3. Choukroun, Jean-Marc, 1975. "A general framework for the development of gravity-type trip distribution models," Regional Science and Urban Economics, Elsevier, vol. 5(2), pages 177-202, May.
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    Cited by:

    1. Andersson, Åke E. & Andersson, David Emanuel & Daghbashyan, Zara & Hårsman, Björn, 2014. "Location and spatial clustering of artists," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 128-137.
    2. Andersson , Åke E. & Andersson , David E. & Daghbashyan, Zara & Hårsman, Björn, 2013. "Spatial Clustering Of Artists," INDEK Working Paper Series 2013/2, Royal Institute of Technology, Department of Industrial Economics and Management.

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