| Abstract: | Various theoretical rationalizations of the gravity hypothesis for spatial interaction are examined. Deterministic utility theory cannot account for variability in individual behavior. Choice models based on Luce's axiom contain some inconsistencies. Random utility theory provides a probabilistic formulation that is internally consistent, and also solves the aggregation problem. However, investigation reveals that, although this provides a theoretical justification for gravity-like behavior, the assumptions made are sufficiently unrealistic to cast doubt on the empirical validity of the gravity hypothesis. |
