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Cited by 156Economic theories and modelsComplex Systems and Time Series AnalysisAgglomeration and Urban Systems

The DOI matches its Crossref record; 14 of the 14 references it cites were found in a registry or an index.

Knife-Edge or Plateau: When Do Market Models Tip?

Ellison, G., Fudenberg, D.·2003·The Quarterly Journal of Economics
DOI 10.1162/003355303322552793
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Abstract

This paper studies whether agents must agglomerate at a single location in a class of models of two-sided interaction. In these models there is an increasing returns effect that favors agglomeration, but also a crowding or market-impact effect that makes agents prefer to be in a market with fewer agents of their own type. We show that such models do not tip in the way the term is commonly used. Instead, they have a broad plateau of equilibria with two active markets, and tipping occurs only when one market is below a critical size threshold. Our assumptions are fairly weak, and are satisfied in Krugman's model of labor market pooling, a heterogeneous-agent version of Pagano's asset market model, and Ellison, Fudenberg, and Möbius' model of competing auctions.

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Metadata

Authors
Ellison, G., & Fudenberg, D.
Affiliations
  • Massachusetts Institute of Technology (US)
  • Harvard University (US)
ORCID
Venue
The Quarterly Journal of Economics
Publisher
Oxford University Press (OUP)
Published
2003-11-01
Volume
118
Issue
4
Pages
1249-1278
ISSN
  • 0033-5533 (ISSN-L)
  • 1531-4650
DOI
10.1162/003355303322552793
OpenAlex
W2154859236
Cited by
156
References
14
Citations by year
2026: 4 · 2025: 5 · 2024: 7 · 2023: 7 · 2022: 1 · 2021: 5 · 2020: 7 · 2019: 5 · 2018: 12 · 2017: 8 · 2016: 6 · 2015: 4 · 2014: 9 · 2013: 7 · 2012: 7
FWCI
16.17
Type
journal article
Language
en
Open access
closed
Locations
  • The Quarterly Journal of Economics (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Funders
National Science Foundation (0112018, 0219205)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Complex Systems and Time Series Analysis
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Agglomeration and Urban Systems
Keywords
tipping, agglomeration, increasing returns, price impact, multiple equilibria, labor market pooling, heterogeneous agents, spatial economics

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