Abstract
We begin with a simple model which we use to discuss a competitive allocation within a city of identical individuals. In this chapter, decentralisation is complete: everyone, within the framework of existing property rights, maximises either utility or profit. The urban infrastructure, which includes transportation, improved land and a public good, is determined exogenously. We investigate the characteristics of the allocation. In chapter three, we examine how these characteristics are affected by exogenous factors. In later chapters, we extend the model in several directions and we revise some of the results presented here.
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Papageorgiou, Y.Y., Pines, D. (1999). Urban Equilibrium. In: An Essay on Urban Economic Theory. Advances in Urban and Regional Economics, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4947-5_2
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DOI: https://doi.org/10.1007/978-1-4615-4947-5_2
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