The Cusp Catastrophe in the Urban Retail Model

Abstract
In this paper we will show that for a suitable choice of the parameters in an urban retail model as developed by Huff and by Lakshmanen and Hansen one finds a cusp catastrophe in the surface of equilibrium points. We give some economic consequences of the fact that we have a cusp catastrophe. Furthermore, we show that for other choices of the parameters the equilibrium points of the model depend smoothly on the parameters.

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