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Spatial Segregation and Urban Structure

  • Pascal MOSSAY
  • Pierre PICARD

In this paper, we study the social interactions between two populations of individuals living in a city. Agents consume land and benefit from intra and intergroup social interactions. We show that segregation arises in equilibrium: populations become separated in distinct spatial neighborhoods. Two- and three-district urban structures are characterized. For high population ratios or strong intergroup interactions, only three-district cities exist. In other cases, multiplicity of equilibria arises. Moreover, for sufficiently low population ratios or very weak intergroup interactions, all individuals agree on the optimal spatial equilibrium.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 13056.

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Length: 46 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:eti:dpaper:13056
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  1. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August.
  2. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
  3. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
  4. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
  5. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
  6. repec:cup:cbooks:9780521346627 is not listed on IDEAS
  7. de Marti, Joan & Zenou, Yves, 2011. "Identity and Social Distance in Friendship Formation," Research Papers in Economics 2011:13, Stockholm University, Department of Economics.
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