IDEAS home Printed from
   My bibliography  Save this article

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


  • E Borukhov
  • O Hochman


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.

Suggested Citation

  • E Borukhov & O Hochman, 1977. "Optimum and market equilibrium in a model of a city without a predetemined center," Environment and Planning A, Pion Ltd, London, vol. 9(8), pages 849-856, August.
  • Handle: RePEc:pio:envira:v:9:y:1977:i:8:p:849-856

    Download full text from publisher

    File URL:
    File Function: abstract
    Download Restriction: Fulltext access restricted to subscribers, see for details

    File URL:
    File Function: main text
    Download Restriction: Fulltext access restricted to subscribers, see for details

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Hausmann, Ricardo & Klinger, Bailey, 2008. "Growth Diagnostics in Peru," Working Paper Series rwp08-62, Harvard University, John F. Kennedy School of Government.
    2. Dani Rodrik, 2010. "Diagnostics before Prescription," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 33-44, Summer.
    3. Andres Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe," ERSA conference papers ersa06p371, European Regional Science Association.
    4. Riccardo Crescenzi & Andrés Rodriguez-Pose & Michael Storper, 2007. "The territorial dynamics of innovation: a Europe-United States comparative analysis," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 673-709, November.
    5. Ricardo Hausmann & Bailey Klinger, 2008. "Growth Diagnostics: Perú," Research Department Publications 2005, Inter-American Development Bank, Research Department.
    6. Andy Pike & Andres Rodriguez-Pose & John Tomaney, 2007. "What Kind of Local and Regional Development and for Whom?," Regional Studies, Taylor & Francis Journals, vol. 41(9), pages 1253-1269.
    7. Riccardo Crescenzi, 2005. "Innovation and Regional Growth in the Enlarged Europe: The Role of Local Innovative Capabilities, Peripherality, and Education," Growth and Change, Wiley Blackwell, vol. 36(4), pages 471-507.
    8. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 991-999.
    9. Ron Boschma, 2004. "Competitiveness of Regions from an Evolutionary Perspective," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1001-1014.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. 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.
    2. Charlot, Sylvie & Duranton, Gilles, 2004. "Communication externalities in cities," Journal of Urban Economics, Elsevier, vol. 56(3), pages 581-613, November.
    3. Gabriel Ahlfeldt & Nicolai Wendeland, 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.
    4. 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.
    5. Zenou, Yves, 2000. "Urban unemployment, agglomeration and transportation policies," Journal of Public Economics, Elsevier, vol. 77(1), pages 97-133, July.
    6. Jose Noguera, 2000. "Barter Economies and Centralized Merchants," CERGE-EI Working Papers wp162, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    7. 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, vol. 30(3), pages 289-324, May.
    8. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, Elsevier.
    9. Akamatsu, Takashi & Fujishima, Shota & Takayama, Yuki, 2014. "On Stable Equilibria in Discrete-Space Social Interaction Models," MPRA Paper 55938, University Library of Munich, Germany.
    10. Masahisa Fujita, 2010. "The Evolution Of Spatial Economics: From Thünen To The New Economic Geography," The Japanese Economic Review, Japanese Economic Association, vol. 61(1), pages 1-32.
    11. Bazhanov, Andrei & Hartwick, John, 2006. "Dispersed Interactions of Urban Residents," MPRA Paper 766, University Library of Munich, Germany.
    12. Jorge Andrés Talero Bernal, 2015. "Determinantes del precio del suelo como variable proxy de las preferencias idiosincráticas de los individuos en un marco teórico de equilibrio general," REVISTA CIFE, UNIVERSIDAD SANTO TOMÁS, February.
    13. Akio Kishi & Tatsuhito Kono & Yoshitaka Nozoe, 2015. "Location of Retail Stores in City Center and Outskirts under Spatial Price Competition: Improvements in Radial and Ring Roads," The Review of Regional Studies, Southern Regional Science Association, vol. 45(2), pages 173-194, Fall.
    14. 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, August.
    15. Akamatsu, Takashi & Fujishima, Shota & Takayama, Yuki, 2017. "Discrete-space agglomeration model with social interactions: Multiplicity, stability, and continuous limit of equilibria," Journal of Mathematical Economics, Elsevier, vol. 69(C), pages 22-37.
    16. Ahlfeldt, Gabriel M., 2008. "If Alonso was Right: Residual Land Price, Accessibility and Urban Attraction," MPRA Paper 11707, University Library of Munich, Germany.
    17. 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.
    18. Takatoshi Tabuchi, 2011. "City Formation and Transport Costs," Chapters,in: A Handbook of Transport Economics, chapter 6 Edward Elgar Publishing.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pio:envira:v:9:y:1977:i:8:p:849-856. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.