ECO 421LEC Lecture Notes - Lecture 2: Defensive Wall, Quartile
Document Summary
10,000 bc domestication of barley and wheat. 3,500 bc writing was discovered to facilitate central record keeping, contracts, made trading more trustworthy and easier. Length of wall: it is good because it encloses a larger area inside and makes density lower; it is bad because there is a longer wall to defend per person inside the wall. Adding demands for private good and public good: the hotelling problem. The customers are uniformly distributed on the beach and each person has the same demand. Their demand does not depend on the price of ice-cream or the. Transport cost from the customer"s location to the ice cream seller"s location. If the ice cream seller did not expect competition, he could locate anywhere. But let us say that he locates where the red arrow is pointing. If the second ice-cream seller (blue arrow) located to the left of the first, she would capture all the market to the left which is bigger.
