Abstract
Most general equilibrium models — both dynamic and static — lack the spatial dimension. There is however a small number of exceptions — the general equilibrium models of Lefeber (1958). Mills (1970) and Koopmans-Beckman (1957) are examples ordered in increasing degree of complexity in assumptions made. It is the aim of this paper to relax some of the simplifying assumptions made in the previously mentioned spatial models in order to analyze the consequences for the solvability. The first question posed is about the existence of solutions to more general spatial models. The second question concentrates on the implementation aspect of primal solutions to spatial models. The third question concerns the problem of an optimal number of firms. The theoretical discussion is followed by a numerical example. Operational conclusions are presented.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.