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Optimum and market equilibrium in a model of a city without a predetemined center

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  • E Borukhov
  • O Hochman
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    Abstract

    Most of the recent theoretical literature on the internal structure of cities has assumed that a city is organized around a predetermined center, and that all traffic in the city is oriented toward that point. This is an oversimplification. It is not correct that all traffic in modern cities either goes to the center or comes from the center. In this paper we assume that every individual travels to every location in the city. The individuals choose locations that minimize the sum of their transportation and housing expenditures. Results are obtained for a social optimization and for a competitive equilibrium. In both cases there is a center where the density and land prices are higher; the density decreases with distance from this center. The optimal city is more dense than the `competitive' one owing to externalities which are not taken into account in the latter case.

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    Bibliographic Info

    Article provided by Pion Ltd, London in its journal Environment and Planning A.

    Volume (Year): 9 (1977)
    Issue (Month): 8 (August)
    Pages: 849-856

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    Handle: RePEc:pio:envira:v:9:y:1977:i:8:p:849-856

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    Web page: http://www.pion.co.uk

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    Cited by:
    1. Berliant, Marcus & Konishi, Hideo, 2000. "The endogenous formation of a city: population agglomeration and marketplaces in a location-specific production economy," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 30(3), pages 289-324, May.
    2. Gabriel Ahlfeldt & Nicolai Wendland, 2008. "Fifty Years of Urban Accessibility: The Impact of Urban Railway Network on the Land Gradient in Industrializing Berlin," Working Papers 023, Chair for Economic Policy, University of Hamburg.
    3. Sylvie Charlot & Gilles Duranton, 2003. "Communication Externalities in Cities," CEP Discussion Papers, Centre for Economic Performance, LSE dp0592, Centre for Economic Performance, LSE.
    4. Zenou, Yves, 2000. "Urban unemployment, agglomeration and transportation policies," Journal of Public Economics, Elsevier, Elsevier, vol. 77(1), pages 97-133, July.
    5. Bazhanov, Andrei & Hartwick, John, 2006. "Dispersed Interactions of Urban Residents," MPRA Paper 766, University Library of Munich, Germany.
    6. Akamatsu, Takashi & Fujishima, Shota & Takayama, Yuki, 2014. "On Stable Equilibria in Discrete-Space Social Interaction Models," MPRA Paper 55938, University Library of Munich, Germany.
    7. Jose Noguera S., 2001. "Barter Economies and Centralized Merchants," Macroeconomics, EconWPA 0012015, EconWPA.
    8. Tse, Chung-Yi, 2010. "Thick market externalities in a spatial model," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 40(2-3), pages 92-105, May.
    9. Andre de Palma & Yorgos Y. Papageorgiou, 1989. "Toward an Endogenous Central Place Theory," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 828, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    10. Ahlfeldt, Gabriel M., 2008. "If Alonso was Right: Residual Land Price, Accessibility and Urban Attraction," MPRA Paper 11707, University Library of Munich, Germany.
    11. Ahlfeldt, Gabriel M., 2009. "The train has left the station: Do markets value intra-city access to inter-city rail connections?," MPRA Paper 13900, University Library of Munich, Germany.
    12. Anas, Alex & Xu, Rong, 1999. "Congestion, Land Use, and Job Dispersion: A General Equilibrium Model," Journal of Urban Economics, Elsevier, vol. 45(3), pages 451-473, May.

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