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Technological linkages and efficient location of indivisible activities: Koopmans-Beckmann and Von Thünen unified

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  • FUJITA, Masahisa

    (University of Pennsylvania)

  • THISSE, Jacques-François

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

Abstract

Consider a model à la Koopmans-Beckmann involving two indivisible and interactive firms, as well as a continuum of workers. Firm 1 uses labor, while firm 2 uses labor and good 1 produced by firm 1; both goods 1 and 2 can be exported their output but good 1 cannot be imported. The land capitalization process, based on workers' competition on a perfectly competitive land market, is used to design a noncooperative game betwccn firms 1 and 2. The equilibria of this game always exist and are socially optimal. Various extensions of the basic model are also discussed.

Suggested Citation

  • FUJITA, Masahisa & THISSE, Jacques-François, 1992. "Technological linkages and efficient location of indivisible activities: Koopmans-Beckmann and Von Thünen unified," LIDAM Discussion Papers CORE 1992043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1992043
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    Cited by:

    1. Jacques-François Thisse & Gilles Duranton, 1996. "La politique foncière dans une économie spatiale," Revue Économique, Programme National Persée, vol. 47(2), pages 227-261.
    2. José Pedro Pontes, 2003. "Industrial Clusters and Peripheral Areas," Environment and Planning A, , vol. 35(11), pages 2053-2068, November.

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