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Tipping and Residential Segregation: A Unified Schelling Model

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  • Zhang, Junfu

    () (Clark University)

Abstract

This paper presents a Schelling-type checkerboard model of residential segregation formulated as a spatial game. It shows that although every agent prefers to live in a mixed-race neighborhood, complete segregation is observed almost all of the time. A concept of tipping is rigorously defined, which is crucial for understanding the dynamics of segregation. Complete segregation emerges and persists in the checkerboard model precisely because tipping is less likely to occur to such residential patterns. Agent-based simulations are used to illustrate how an integrated residential area is tipped into complete segregation and why this process is irreversible. This model incorporates insights from Schelling's two classical models of segregation (the checkerboard model and the neighborhood tipping model) and puts them on a rigorous footing. It helps us better understand the persistence of residential segregation in urban America.

Suggested Citation

  • Zhang, Junfu, 2009. "Tipping and Residential Segregation: A Unified Schelling Model," IZA Discussion Papers 4413, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4413
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    References listed on IDEAS

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    1. N. Emrah Aydinonat, 2005. "An interview with Thomas C. Schelling: Interpretation of game theory and the checkerboard model," Economics Bulletin, AccessEcon, vol. 2(2), pages 1-7.
    2. Pancs, Romans & Vriend, Nicolaas J., 2007. "Schelling's spatial proximity model of segregation revisited," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 1-24, February.
    3. Fagiolo, Giorgio & Valente, Marco & Vriend, Nicolaas J., 2007. "Segregation in networks," Journal of Economic Behavior & Organization, Elsevier, vol. 64(3-4), pages 316-336.
    4. Junfu Zhang, 2003. "Revisiting Residential Segregation by Income: A Monte Carlo Test," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 2(1), pages 27-37, April.
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    14. Bøg, Martin, 2007. "Is Segregation Robust?," MPRA Paper 8774, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Li, Qiang, 2014. "Ethnic diversity and neighborhood house prices," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 21-38.
    2. repec:aea:jeclit:v:55:y:2017:i:2:p:609-20 is not listed on IDEAS
    3. Grauwin, Sébastian & Goffette-Nagot, Florence & Jensen, Pablo, 2012. "Dynamic models of residential segregation: An analytical solution," Journal of Public Economics, Elsevier, vol. 96(1), pages 124-141.
    4. Zhang, Junfu & Zheng, Liang, 2015. "Are people willing to pay for less segregation? Evidence from U.S. internal migration," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 97-112.
    5. Demetry, Marcos, 2017. "Segregation in Urban Areas: A Literature Review," Ratio Working Papers 304, The Ratio Institute.
    6. repec:gam:jgames:v:8:y:2017:i:4:p:51-:d:119855 is not listed on IDEAS
    7. repec:bla:presci:v:96:y:2017:i:4:p:759-784 is not listed on IDEAS
    8. Caetano, Gregorio & Maheshri, Vikram, 2017. "School segregation and the identification of tipping behavior," Journal of Public Economics, Elsevier, vol. 148(C), pages 115-135.
    9. Ioannides, Yannis M., 2015. "Neighborhoods to nations via social interactions," Economic Modelling, Elsevier, vol. 48(C), pages 5-15.
    10. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, Elsevier.
    11. repec:spr:jogath:v:46:y:2017:i:1:d:10.1007_s00182-015-0526-2 is not listed on IDEAS
    12. Rémi Lemoy & Charles Raux & Pablo Jensen, 2016. "Exploring the polycentric city with multi-worker households: an agent-based microeconomic model," Post-Print hal-00602087, HAL.
    13. Zhang, Junfu & Zheng, Liang, 2014. "Are Ghettos Good or Bad? Evidence from U.S. Internal Migration," IZA Discussion Papers 8093, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    checkerboard model; tipping; residential segregation;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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