The thesis of this paper is mathematical formulation of the laws of Economics with application of the principle of Least Action of classical mechanics. This paper is proposed as the rigorous mathematical approach to Economics provided by the fundamental principle of the physical science – the...

Contrary to the customary view that the celebrated Nash-equilibrium theorem in Game Theory is paradigmatic for non-cooperative games, it is shown that, in fact, it is essentially based on a particularly strong cooperation assumption. Furthermore, in practice, this cooperation assumption is...

This paper addresses a longstanding stability issue of equilibria in a seminal model in spatial economic theory, making use of the potential game approach. The model explains the formation of multiple business centers in cities as an equilibrium outcome under the presence of commuting costs of...

Using the theory of potential games, this paper addresses the emergence of polycentric struc- tures in cities, resulting from trade-offs between agglomeration economies and congestion effects. We consider a model that explains the formation of multiple business centers in cities as an...

We investigate the differences and connections between discrete-space and continuous-space social interaction models. Although our class of continuous-space model has a unique equilibrium, we find that discretized models can have multiple equilibria for any degree of discretization, which...

Since the seminal work of Henderson (1981), a number of studies examined the effect of staggered work hours by analyzing models of work start time choice that consider the trade-off between negative congestion externalities and positive production externalities. However, these studies described...

We study the equilibrium properties, including stability, of discrete-space social interaction models with a single type of agents, and their continuous limit. We show that, even though the equilibrium in discrete space can be non-unique for all finite degree of discretization, any sequence of...

We study the equilibrium properties, including stability, of discrete-space social interaction models with a single type of agents, and their continuous limit. We show that, even though the equilibrium in discrete space can be non-unique for all finite degree of discretization, any sequence of...

This study examines the properties of equilibrium, including the stability, of discrete-space agglomeration models with social interactions. The findings reveal that while the corresponding continuous-space model has a unique equilibrium, the equilibrium in discrete space can be non-unique for...

In a model of incomplete, heterogeneous information, with externalities and strategic interactions, we analyze the possibility for learning to act as coordination device. We build on the framework proposed by Angeletos and Pavan (2007) and extend it to a dynamic multiperiod setting where agents...