TY - JOUR
T1 - The logical foundations of urban economics are consistent
AU - Papageorgiou, Yorgos Y.
AU - Pines, David
PY - 1990/2
Y1 - 1990/2
N2 - The logical foundations of models in urban economics with continua of agents distributed over continuous spaces have recently been questioned. It was argued, among other things, that these models cannot represent properly models with discrete numbers of households, each occupying a parcel of land. In this paper we propose a mapping, based on the continuous model utility and defined over discrete parcels of land, which determines the discrete model utility so that the equilibrium solutions of the two models coincide. Hence the continuous model of urban economics can be used as a tool for studying equilibria and comparative statics of a discrete model which appears to have sound logical foundations.
AB - The logical foundations of models in urban economics with continua of agents distributed over continuous spaces have recently been questioned. It was argued, among other things, that these models cannot represent properly models with discrete numbers of households, each occupying a parcel of land. In this paper we propose a mapping, based on the continuous model utility and defined over discrete parcels of land, which determines the discrete model utility so that the equilibrium solutions of the two models coincide. Hence the continuous model of urban economics can be used as a tool for studying equilibria and comparative statics of a discrete model which appears to have sound logical foundations.
UR - http://www.scopus.com/inward/record.url?scp=38249020805&partnerID=8YFLogxK
U2 - 10.1016/0022-0531(90)90084-W
DO - 10.1016/0022-0531(90)90084-W
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AN - SCOPUS:38249020805
SN - 0022-0531
VL - 50
SP - 37
EP - 53
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -