Study on Applications of Supply and Demand Theory of Microeconomics and Physics Field Theory to Central Place Theory

Nien, Benjamin Chih-Chien (2006): Study on Applications of Supply and Demand Theory of Microeconomics and Physics Field Theory to Central Place Theory. Unpublished.

Abstract

This paper attempts to analyze “central place theory” of spatial economics based on “supply and demand theory” in microeconomics and “field theory” in physics, and also discuss their relationship. Three most important research findings are described below. Firstly, the concept of market equilibrium could be expressed in the mathematical form of physics field theory under proper hypothesis. That is because the most important aspect of field theory model is that complex analysis is taken as a key mathematical tool. If assuming that “imaginary part” is neglected in this model, it is found that this model has the same mathematical structure as supply and demand theory of microeconomics. Secondly, the mathematical model of field theory can be applied to express clearly many concepts of central place theory, or even introduce many new concepts. Thirdly, it could also be taken as a study of combining the Hotelling Model and Moses Model for the location theory in another mathematic approach.

• Item Type: MPRA Paper
• Language: English
• Keywords: Mathematical Economics; Economic Geography; Microeconomics
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory; D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R10 - General

References

Beckmann, Martin J., Puu, Tönu (1990) Spatial structures. New York: Springer-Verlag Beckmann, Martin J., Puu, Tönu (1985) Spatial economics : density, potential, and flow. New York: Elsevier Science Puu, Tönu (1997) Mathematical location and land use theory: an introduction. New York: Springer Pikler, A. G. (1954), Utility Theories in Field Physics and Mathematical Economics, The British Journal for the philosophy of Science, 17(5):47-58. Shiunin, Yu., Danilova, N. (2000), Principles of Field Theories in Macroeconomics, Computer Modeling & New Technologies, 1(4):33-40. Saff, E. B., Snider, A.D. (2003) Fundamentals of Complex Analysis. New Jersey: Prentice Hall. Jiang, S. C., Chen, M.C., Zeng, C.L., Fang, J. M. (1996) Economic Geography. Taipei: San-Ming Book Store Press. Churchill, R. V., Brown, J. W. (1996) Complex Variables and Applications. New York: Mc Graw-Hill. Case, K. E., Fair, Ｒ. C. (1999) Principle of Economics. New Jersey: Prentice Hall. Holman, J. P. (1990) Heat Transfer. New York: McGraw-Hill. Batchelor, G. K. (2000) An Introduction to Fluid Dynamics. Cambridge: Cambridge University Press. Incropera, F. P., DeWitt, D.P. (2002) Principles of Heat Transfer. New York: John Wiley & Sons. Mathews, J. H., Howell, R.W. (2001) Complex Analysis for Mathematics and Engineering. Sudbury: Jones and Bartlett Publishers. Jeng, J.D. (1989) Introduction to electromagnetic. Jian-hung publisher, Taipei, Shr, Y.P. (1985) Heat Transfer. Taipei: Central Book Publish. Hou,C.P. (1986) Theory and Problems of Complex Variables. Taipei: Central Book Publish, 247-256. Hoover, E. M., Giarratani, F. (1984) An Introduction to Regional Economics. New York: McGraw-Hill Web Data: http://people.hofstra.edu/geotrans/eng/ch7en/meth7en/ch7m2en.html Parr, J.B., Denike K.G. (1970) Theoretical Problems in Central Place Theory. Economic Geography, 46(6):568-586 Hotelling, H (1929), Stability in Competition, The Economic Journal, 39(153):41-57. Bucklin, L. P. (1971), Retail Gravity Models and Consumer Choice: A theoretical and Empirical Critique, Economic Geography, 47(4):489-497. Eaton, B. C., Lipsey, R.G. (1982), An Economic Theory of Central Places, The Economic Journal, 92(365):56-72. Hiroyuki Kohsaka, The location Process of Central Place System within a Circular City, Economic Geography, 62(3):254-266. Lindberg, O (1953), An Economic Geographical Study of the Localization of the Swedish Paper Industry, Geografiska Annaler, 35(1):28-40. Moses, L. N (1958), Location and the Theory of Production, The Quarterly Journal of Economics, 72(2):259-272. Beckmann, M (1952), A continuous Model of Transportation, Econometrica, 20(4):643-660. Sherppard, E. S (1979), Geographic Potential, Annals of the Association of American Geographer, 69(3):438-447. Boulding, K. E (1956), General Systems Theory－The Skeleton of Science, Management Science, 2(3):127-139. Lukermann, F., Porter, P. W (1960), Gravity and Potential Models in Economic Geography, Annals of the Association of the Association of American Geographers, 50(4):493-504. Yegorov, Y (2002), Social Dynamics and Emergence of Order: Building Theory of Field in Economics, Unpublished Manuscript.