Agglomeration and market interaction

Fujita, Masahisa;Thisse, Jacques-François
(2002)

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  • Fujita, Masahisa
    Author
  • Thisse, Jacques-FrançoisUCLouvain
    Author
Abstract
The most salient feature of the spatial economy is the presence of a large variety of economic agglomerations. Our purpose is to review some of the main explanations of this universal phenomenon, as they are proposed in urban economics and modern economic geography. We first show why the competitive framework can hardly be the foundation for the economics of agglomeration. We then briefly review the alternative modeling strategies. In the hope to make our paper accessible to a broad audience, we presents in detail the two models that have been used so farto study the spatial distribution of economic activities. Finally, several extensions of these models are discussed.
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Fujita, M., & Thisse, J.-F. (2002). Agglomeration and market interaction (CORE Discussion Papers 2002/11). https://hdl.handle.net/2078.5/128336