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ON THE SHAPE OF MARKET AREAS IN LÖSCHIAN SPATIAL MODELS *
Author(s) -
Eswaran Mukesh,
Ware Roger
Publication year - 1986
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1986.tb00822.x
Subject(s) - assertion , hexagonal crystal system , lattice (music) , space (punctuation) , variety (cybernetics) , hexagonal lattice , simple (philosophy) , mathematical economics , computer science , economics , mathematics , econometrics , physics , artificial intelligence , condensed matter physics , chemistry , epistemology , antiferromagnetism , acoustics , programming language , crystallography , operating system , philosophy
. The paper analyzes the lattice shape of equilibrium configurations of firms in spatial models. Lösch's assertion that free entry will result in hexagonal market areas is proved for a variety of assumptions about the nature of the market equilibrium, and about the preferences of customers. All the models considered, however, incorporate rational entry behavior and identify the stable lattice as an entry deterring equilibrium. A simple proof is presented of the optimality of hexagonal market areas, at least among regular space‐filling configurations.