Alonso's discrete population model of land use: efficient allocations and competitive equilibria

In his 1964 book, Alonso proposed several concepts of land use equilibrium in terms of discrete population. However, the so-called new urban economics has been concerned exclusively with continuous population models. It is our belief that in order to develop logical foundations for continuous population models, it would be useful to go back to the original models of Alonso. In this paper, we focus on the additive land price model of Alonso, and examine its solution characteristics. In particular, we demonstrate the existence and Pareto efficiency of equilibria, and the supportability of efficient allocations through additive land price systems. -Authors