Abstract
This paper is concerned with the foundations of urban spatial interaction modelling but is cast in a more general form. Its purpose is to establish a sound microeconomic basis for the construction of CGE (computable general equilibrium) models of cities. It is based on three premises: (1) before trying to compute equilibria, it is prudent to show that they exist; (2) careful consideration of the circumstances under which they exist is advantageous both technically and theoretically; (3) by constructing an existence proof which centres on a mathematical programming problem, it is possible to forge a direct connection between the programming-based spatial interaction modelling literature and general equilibrium theory.
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