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A monopolistic competition model of spatial agglomeration: Differentiated product approach
时间:2017-04-28

【摘要】Although most existing models of spatial agglomeration rely on the concept of external economies, this paper demonstrates that pure market processes based on price interactions alone can generate spatial agglomeration of economic activities. To this end, a spatial version of the Chamberlinian monopolistic competition model is developed, in which a continuum of firms supply a continuum of differentiated goods to homogeneous households in a linear city. The monopolistic equilibria are compared with the first-best and second-best solutions.

【文献来源】Fujita M. A monopolistic competition model of spatial agglomeration: Differentiated product approach[J]. Regional science and urban economics, 1988, 18(1): 87-124.