Revealing the secret of negative differential resistance
Dynamic resistance
The "mystic" phenomenon of negative differential resistance (NDR), particularly the OP's N-shaped NDR, can be easily understood by the extremely simple and intuitive concept of dynamic resistance. It can be easily demonstrated by a simple electrical experiment where a variable voltage source V drives a variable resistor R (rheostat). If you don't mind, let you control the source and I will control the rheostat.
(The picture is from my Wikibooks story about NDR).
Modified resistance
Now imagine that you are increasing the voltage across the rheostat and, at the same time, I start to increase its resistance. Depending on the rate of change, the current will increase more slowly, will not change or even will decrease. This will create the illusion of increased, infinite or "negative" resistance.
Negative resistance
So this type of negative resistance is just a vigorously changing dynamic resistance (in the same direction as the input voltage source).
Neutralized resistance
If we connect such a "super dynamic resistor" in parallel with an ordinary resistor with equivalent "positive" resistance (OP's circuit), we will get a "super dynamic current divider" that maintains a constant (not zero) total current in such a simple way. In terms of resistance, this means the total differential resistance is infinite... but it is hard to imagine.
See more in my Wikibooks story about NDR.
EDIT: I went back a year and a half to supplement my fancy story about this unique phenomenon with CircuitLab experiments. So it became more convincing and attractive.
CircuitLab experiments
I slightly changed the values of the OP resistors to more convenient ones for the purposes of these concept experiments.
Experimental setup
According to the explanations above, two resistors are connected in parallel - R1k with a 1 kΩ "positive" resistance, and R-1k with a 1 kΩ "negative" resistance. I have put both names in square quotes because these resistances are neither negative nor positive, but the most common ohmic resistance known since the 19th century. So the negative differential resistance of -1 kΩ is implemented by a variable resistor whose resistance changes from 111 Ω to infinity when Vin varies from 1 V to 10 V.
simulate this circuit – Schematic created using CircuitLab
We need to observe the currents flowing through the resistors. To simplify the schematics, we can combine the resistors with the ammeters into one device ("visualized resistor"). To do this, open the parameters window of each of the two ammeters and set the corresponding internal resistance.
Step-by-step experiments
To understand the mechanism of this so-called "N-shaped negative differential resistance", let's first examine the circuit at three successive values of the input voltage - 1, 2 and 3 V.
Vin =1 V, R-1k = 100 Ω: At 1 V input voltage, the 1 k positive resistor consumes 1 mA. The negative resistor has a 111 Ω resistance, so 9 mA current flows through it, and the total current consumed is 10 mA.
simulate this circuit
Vin =2 V, R-1k = 222 Ω. When the input voltage increases to 2 V, the negative resistor increases its ohmic resistance to 250 Ω. Now the positive resistor consumes 2 mA but the negative 8 mA, and the total current consumed is again 10 mA (i.e., the left current increases but the right current decreases, and their sum I remains constant).
simulate this circuit
Vin =3 V, R-1k = 375 Ω: Next, the input voltage increases to 3 V, and the negative resistor increases its ohmic resistance to 428 Ω. The positive resistor consumes 3 mA but the negative 7 mA, and the total current consumed is, as usual, 10 mA... and so on...
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Automated experiment
To sweep the negative resistance, we can simulate it using a behavioral current source I-1k that produces a current 10 mA - IR.
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Graphical representation
From the graphs below, we see that as the input voltage increases, the current through the positive resistor increases and through the negative resistor decreases because its resistance increases. The result is a constant common current which is seen by the input voltage source as an infinite differential resistance.
Application
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Conclusions
The N-shaped negative differential resistor (e.g. a tunnel diode) is a dynamic resistor that increases its static (ohmic) resistance when the voltage across it increases.
If connected in parallel to an equivalent "positive" resistor, it neutralizes its resistance so that the equivalent resistance is infinite.