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Schelling's Spatial Proximity Model of Segregation Revisited

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  • Romans Pancs

    (London School of Economics)

  • Nicolaas J. Vriend

    (Queen Mary, University of London)

Abstract

Schelling [1969, 1971a, 1971b, 1978] presented a microeconomic model showing how an integrated city could unravel to a rather segregated city, notwithstanding relatively mild assumptions concerning the individual agents' preferences, i.e., no agent preferring the resulting segregation. We examine the robustness of Schelling's model, focusing in particular on its driving force: the individual preferences. We show that even if all individual agents have a strict preference for perfect integration, best-response dynamics will lead to segregation. What is more, we argue that the one-dimensional and two-dimensional versions of Schelling's spatial proximity model are in fact two qualitatively very different models of segregation.

Suggested Citation

  • Romans Pancs & Nicolaas J. Vriend, "undated". "Schelling's Spatial Proximity Model of Segregation Revisited," Modeling, Computing, and Mastering Complexity 2003 15, Society for Computational Economics.
    • Handle: RePEc:sce:cplx03:15
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    File URL: http://www.econ.qmul.ac.uk/papers/doc/wp487.pdf
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    More about this item

    Keywords

    Neighborhood segregation; Myopic Nash Equilibria; Best-response dynamics; Markov chain; Limit-behavior.;
    All these keywords.

    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

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