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Study on Applications of Supply and Demand Theory of Microeconomics and Physics Field Theory to Central Place Theory

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  • Nien, Benjamin Chih-Chien

Abstract

This paper attempts to analyze “central place theory” of spatial economics based on “supply and demand theory” in microeconomics and “field theory” in physics, and also discuss their relationship. Three most important research findings are described below. Firstly, the concept of market equilibrium could be expressed in the mathematical form of physics field theory under proper hypothesis. That is because the most important aspect of field theory model is that complex analysis is taken as a key mathematical tool. If assuming that “imaginary part” is neglected in this model, it is found that this model has the same mathematical structure as supply and demand theory of microeconomics. Secondly, the mathematical model of field theory can be applied to express clearly many concepts of central place theory, or even introduce many new concepts. Thirdly, it could also be taken as a study of combining the Hotelling Model and Moses Model for the location theory in another mathematic approach.

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File URL: http://mpra.ub.uni-muenchen.de/390/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 390.

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Date of creation: 18 Sep 2006
Date of revision: 10 Oct 2006
Handle: RePEc:pra:mprapa:390

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Keywords: Mathematical Economics; Economic Geography; Microeconomics;

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