The Endogenous Formation of a City: Population Agglomeration and Marketplaces in a Location-Specific Production Economy

@article{Berliant2000TheEF,
  title={The Endogenous Formation of a City: Population Agglomeration and Marketplaces in a Location-Specific Production Economy},
  author={M. Berliant and Hideo Konishi},
  journal={Regional Science and Urban Economics},
  year={2000},
  volume={30},
  pages={289-324}
}
Much of the literature on the endogenous generation of a city employs increasing returns to scale in order to obtain agglomeration. In contrast, the model considered here focuses on the role of marketplaces or trading centers in the agglomeration of population as cities. Gains to trade in combination with transportation and marketplace setup costs suffice to endogenously generate a city or cities with one or multiple marketplaces. It is assumed that consumers are fully mobile while production… Expand
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