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Back to the Future: A Simple Solution to Schelling Segregation

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  • Sylvain Barde

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Abstract

The maximum entropy methodology is applied to the Schelling model of urban segregation in order to obtain a reliable prediction of the stable configuration of the system without resorting to numerical simulations. We show that this approach also provides an implicit equation describing the distribution of agents over a city which allows for directly assessing the effect of model parameters on the solution. Finally, we discuss the information theoretic motivation for applying this methodology to the Schelling model, and show that it effectively rests on the presence of a potential function, suggesting a broader applicability of the methodology.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p862.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p862

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  1. Alexis Toda, 2010. "Existence of a statistical equilibrium for an economy with endogenous offer sets," Economic Theory, Springer, vol. 45(3), pages 379-415, December.
  2. Sylvain Barde, 2011. "Ignorance is bliss: rationality, information and equilibrium," Sciences Po publications 2011-04, Sciences Po.
  3. Florence Goffette-Nagot & Pablo Jensen & Sébastian Grauwin, 2009. "Dynamic models of residential segregation: Brief review, analytical resolution and study of the introduction of coordination," Post-Print halshs-00404400, HAL.
  4. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  5. Foley Duncan K., 1994. "A Statistical Equilibrium Theory of Markets," Journal of Economic Theory, Elsevier, vol. 62(2), pages 321-345, April.
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