Approximation of a Continuous Core-periphery Model by Core-periphery Models with a Large Number of Small Regions

Abstract

For a continuous core-periphery model, we construct a core-periphery model with n regions for each nge 2. Assuming that the known functions of the core-periphery model with n regions and the diameters of n regions converge to the known functions of the continuous core-periphery model and 0 respectively as the number n tends to infinity, this paper proves approximate relations between the continuous core-periphery model and core-periphery models with a large number of small regions when the models are in short-run equilibrium.