Beckmann's interaction model has each resident touching base in face-to-face activity with every other resident, per unit time, at the other's residence. We re-work his resulting "interaction city" with each resident "operating with" a Cobb-Douglas utility function. We then turn to a more satisfactory "technology" of residents interacting and solve for an interaction city with an explicit payoff to resident i for engaging in interaction.
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Paper provided by Queen's University, Department of Economics in its series Working Papers with number
1170.
Find related papers by JEL classification: R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
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