Perfect competition in a continuous spatial economy

We present a model of spatial adjustments of economic agents across perfectly competitive locations distributed along a continuous geographical space. The evolution of the spatial economy is governed by a set of partial differential equations. We perform a local stability analysis around the uniform...

Full description

Saved in:
Bibliographic Details
Published inChaos, solitons and fractals Vol. 18; no. 3; pp. 445 - 450
Main Author Mossay, Pascal
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.10.2003
Subjects
PDE
Perfect competition
Spatial economy
Stability
PDE
Spatial economy
Perfect competition
Stability
Online AccessGet full text

Cover

More Information
Summary:We present a model of spatial adjustments of economic agents across perfectly competitive locations distributed along a continuous geographical space. The evolution of the spatial economy is governed by a set of partial differential equations. We perform a local stability analysis around the uniform steady-state by using the method of normal modes. Examples are presented for the case of two consumer types and two local goods. The spatial stability of the uniform steady-state depends crucially on whether the law of demand holds.
ISSN:0960-0779
1873-2887
DOI:10.1016/S0960-0779(02)00668-9