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articles: Cyberspace and physical space in an urban economy


  • Hiroyuki Shibusawa

    () (Faculty of Engineering, Toyohashi University of Technology, Hibarigaoka 1-1, Toyohashi 441-8580, Japan)


In this article I construct a general equilibrium urban model with cyberspace and physical space. In cyberspace, there is a virtual production sector and it produces virtual goods. On the other hand, in physical space, a physical production sector is located in the CBD and it produces physical goods. The behaviour of home and office workers is considered in a Solow and Vickrey type linear city. I derive the market equilibrium of the city by numerical simulation using specific utility and production functions. The land use pattern and the time allocation of the workers are shown. I also show the spatial structure of the telecommunications and transportation networks.

Suggested Citation

  • Hiroyuki Shibusawa, 2000. "articles: Cyberspace and physical space in an urban economy," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(3), pages 253-270.
  • Handle: RePEc:spr:presci:v:79:y:2000:i:3:p:253-270
    Note: Received: 1 November 1998

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    More about this item


    Cyberspace; virtual firm; transportation and telecommunications networks; urban modeling;

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise


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