Abstract
This paper presents a simple, analytically solvable, dual-space economic agglomerations model which, like Krugmann’s model, contains two agglomerative forces. However, in contrast to that model, two agglomerative forces are technological externalities and transaction costs rather than labor division and transaction costs. Moreover, the present model exhibits ‘learning by transacting’ of the technological externalities rather than ‘learning by doing’. This may be a better description for some agglomerative processes in the network age than complete agglomeration in the Industry Age predicted by Krugmann’s model.
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The authors thank two reviewers especially the reviewer no.2 who made a substantial help, by editing and correcting the whole paper. We acknowledge editors of this journal and reviewers’ valuable comments and precious cooperation.
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Shi, Z., Wen, Z. & Xia, J. A Simple, Analytically Solvable, Dual-Space Economic Agglomerations Model. Netw Spat Econ 10, 261–271 (2010). https://doi.org/10.1007/s11067-008-9069-4
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DOI: https://doi.org/10.1007/s11067-008-9069-4