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Leaky-bucket transactions can be regarded as income transfers allowing for transaction costs. In its most rudimentary form, leaky-bucket transactions trace out the maximum leakageʺ of transaction costs before income inequality is exacerbated, or before a welfare loss is experienced. This notion...
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This paper presents a Schelling-type checkerboard model of residential segregation formulated as a spatial game. It … shows that although every agent prefers to live in a mixed-race neighborhood, complete segregation is observed almost all of … the time. A concept of tipping is rigorously defined, which is crucial for understanding the dynamics of segregation …
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