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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. Marcus Berliant & Hideo Konishi, 2000. "The Endogenous Formation of a City: Population Agglomeration and Marketplaces in a Location-Specific Production Economy," Boston College Working Papers in Economics 451, Boston College Department of Economics.
    2. Sylvie Charlot & Gilles Duranton, 2003. "Communication Externalities in Cities," CEP Discussion Papers dp0592, Centre for Economic Performance, LSE.
    3. Jose Noguera, 2000. "Barter Economies and Centralized Merchants," CERGE-EI Working Papers wp162, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
    4. Gabriel M. Ahlfeldt, 2011. "The Train has Left the Station: Do Markets Value Intracity Access to Intercity Rail Connections?," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 312-335, 08.
    5. Andre de Palma & Yorgos Y. Papageorgiou, 1989. "Toward an Endogenous Central Place Theory," Discussion Papers 828, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    6. Zenou, Yves, 1999. "Urban Unemployment, Agglomeration and Transportation Policies," CEPR Discussion Papers 2309, C.E.P.R. Discussion Papers.
    7. Akamatsu, Takashi & Fujishima, Shota & Takayama, Yuki, 2014. "On Stable Equilibria in Discrete-Space Social Interaction Models," MPRA Paper 55938, University Library of Munich, Germany.
    8. Gabriel M. Ahlfeldt & Nicolai Wendland, 2008. "Fifty Years of Urban Accessibility : The Impact of Urban Railway Network on the Land Gradient in Industrializing Berlin," KOF Working papers 08-208, KOF Swiss Economic Institute, ETH Zurich.
    9. 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.
    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. Tse, Chung-Yi, 2010. "Thick market externalities in a spatial model," Regional Science and Urban Economics, Elsevier, vol. 40(2-3), pages 92-105, May.
    12. Bazhanov, Andrei & Hartwick, John, 2006. "Dispersed Interactions of Urban Residents," MPRA Paper 766, University Library of Munich, Germany.

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