A 2D electron system in a quantized magnetic field can be driven by microwave radiation into a non-equilibrium state with strong magnetooscillations of the dissipative conductivity. We demonstrate that in such system a negative conductivity can coexist with a positive diffusion coefficient. In a finite system, solution of coupled electrostatic and linear transport problems shows that the diffusion can stabilize a state with negative conductivity. Specifically, this happens when the system size is smaller than the absolute value of the non-equilibrium screening length that diverges at the point where the conductivity changes sign. We predict that a negative resistance can be measured in such a state. Further, for a non-zero difference between the work functions of two contacts, we explore the distribution of the electrostatic potential and of the electron density in the sample. We show that in the diffusion-stabilized regime of negative conductivity the system splits into two regions with opposite directions of electric field. This effect is a precursor of the domain structure that has been predicted to emerge spontaneously in the microwave-induced zero-resistance states.
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