Entropy, spatial interaction models and discrete choice analysis: Static and dynamic analogies

Abstract

This paper aims at analysing the existence of a formal correspondence between spatial interaction models emanating from entropy theory and micro-economic discrete choice theory (in particular, multinomial logit models.). After a concise review of the literature on this issue, the emphasis is placed on an interpretation of formal analogies between both classes of models in a dynamic context. A simple dynamic spatial interaction model—based on optimal control theory—is proposed, and it is shown that the results confirm also the existence of a formal analogy between (macro) dynamic interaction models and (micro) choice models. Similar results are also derived for Alonso's general theory of movement in a spatial system.