Summary
Most of the literature argues that competitive analysis has nothing interesting to say about location. This paper argues, to the contrary, that a competitive model can have something interesting to say about location, provided that locations are not identical and transportation costs are not zero. To do this, it constructs a competitive intertemporal general equilibrium model and applies it to a suggestive example of migration.
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Ellickson, B., Zame, W. (2006). A Competitive Model of Economic Geography. In: Schultz, C., Vind, K. (eds) Institutions, Equilibria and Efficiency. Studies in Economic Theory, vol 25. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-28161-4_8
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DOI: https://doi.org/10.1007/3-540-28161-4_8
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-28160-3
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