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Market allocations of location choice: An example

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Abstract

The purpose of this paper is to make an example which, first, illustrates Starret’s Spatial Imposibility Theorem, when agents have free mobility; and second, allowes us to get a competitive equilibrium with transportation when agents move only if there is a noticeable difference in utilities that justifies the change of location.

Suggested Citation

  • Josemari Aizpurua & Juan Miguel Benito & Javier Puértolas, 2003. "Market allocations of location choice: An example," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0304, Departamento de Economía - Universidad Pública de Navarra.
    • Handle: RePEc:nav:ecupna:0304
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    1. Tjalling C. Koopmans & Martin J. Beckmann, 1955. "Assignment Problems and the Location of Economic Activities," Cowles Foundation Discussion Papers 4, Cowles Foundation for Research in Economics, Yale University.
    2. Edwin S. Mills, 1970. "The Efficiency Of Spatial Competition," Papers in Regional Science, Wiley Blackwell, vol. 25(1), pages 71-82, April.
    3. Bryan Ellickson & William Zame, 2006. "A Competitive Model of Economic Geography," Studies in Economic Theory, in: Christian Schultz & Karl Vind (ed.), Institutions, Equilibria and Efficiency, chapter 8, pages 131-147, Springer.
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