In this paper we build a spatial, aspiration-based model of learning in the context of Cournot oligopoly from which we want to explore the conditions that lead to the emergence of cooperation among firms. We consider an economy consisting of many identical duopolies; each duopoly is placed on a...

The paper discusses the role of self-organizing phenomena like emergence of infrastructure and self-organizing criticality in a spatial economy. Some theoretical models are discussed and reviewed. Computer models in the form of simple cellular automata, similar to the game "Life" and Schelling's...

This paper investigates the properties of a local economy in which personal connections are important in finding jobs. The complementarities in the model generate an interesting nonlinear relationship between the distribution of human capital in the economy, the characteristics of the social...