Resumen de Market allocations of location choice: an example

Josemari Aizpurua Agirre, Juan Miguel Benito Ostolaza, Javier Puértolas Sagardoy

• The purpose of this paper is to make an example which, first, illustrates Starret¿s Spatial Imposibility Theorem, when agents have free mobility; and second, allowes us to get a competitive equilibrium with transportation when agents move only if there is a noticeable difference in utilities that justifies the change of location.