Econometrica: Sep 1990, Volume 58, Issue 5
On the Optimality of Central Places
https://doi.org/0012-9682(199009)58:5<1101:OTOOCP>2.0.CO;2-Y
p.
1101-1119
Jacques-Francois Thisse, Martine Quinzii
Using the Eaton and Lipsey model, we show that a hierarchical system of central places is socially optimal: firms having less frequent purchases are clustered with firms having more frequent purchases in any configuration minimizing total transport and production costs.Log In To View Full Content