@TechReport{iza:izadps:dp3258, author={Pflüger, Michael P. and Suedekum, Jens}, title={On Pitchforks and Tomahawks}, year={2007}, month={Dec}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={3258}, url={https://www.iza.org/index.php/publications/dp3258}, abstract={The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational hysteresis. We study this seminal model with CES instead of Cobb-Douglas upper tier preferences. This small generalization suffices to change these stark implications. For a wide range of parameters we find that the model exhibits instead a smooth and easily reversible transition from symmetry to agglomeration.}, keywords={bifurcation pattern;agglomeration;new economic geography;core-periphery model}, }