Contents

Introduction

GENERAL EQUILIBRIUM IN SPACE AND AGGLOMERATION

by Urs Schweizer

0.  Introduction

1.  Spatially Separated Markets

2.  Introducing Location Choice

2.1.  The model: classification of problems

2.2.  The first welfare theorem

3.  Integer Assignment

4.  Fractional Assignment

4.1.  The second welfare theorem

4.2.  Equilibrium: the separable case

4.3.  The club assignment problem

5.  Local Public Goods

5.1.  The first best problem

5.2.  Tiebout equilibrium

6.  Concluding Remarks

References

SPATIAL COMPETITION AND THE LOCATION OF FIRMS

by Jean Jaskold Gabszewicz and Jacques-François Thisse

1.  Introduction

2.  Spatial Monopoly

2.1.  Delivered pricing

2.2.  Mill pricing

3.  The Basic Ingredients of Spatial Competition

3.1.  The concept of industry

3.2.  The structure of demand in the industry

3.3.  The definition of equilibrium in the industry

4.  Spatial Oligopolistic Competition

4.1.  Variable prices and parametric locations

4.2.  Variable locations and parametric prices

4.3.  Variable prices and locations

5.  Spatial Competition with Free Entry

5.1.  Spatial monopolistic competition

5.2.  Sequential entry

6.  Reformulations and Conclusions

References

Appendix

URBAN LAND USE THEORY

by Masahisa Fujita

0.  Introduction

1.  Basic Theory of Residential Land Use

1.1.  Locational choice of the household

1.2.  Equilibrium land use

1.3.  Optimal land use, optimal vs. equilibrium

1.4.  Some extensions

2.  Residential Land Use with Externalities

2.1.  Local public goods and location of public facilities

2.2.  Neighborhood externalities

2.3.  Transport congestion and land use for transport

3.  General Equilibrium Models

3.1.  Prototypes of general equilibrium models

3.2.  Port city model: Type A

3.3.  Spatial externality models: Type B

3.4.  Imperfect competition model: Type C

4.  Dynamics

4.1.  Prototypes of dynamic models

4.2.  One sector model

4.3.  Urban sprawl

4.4.  Urban renewal, filtering process, and land development under uncertainty

4.5.  Suggestions for further research

References

EXTERNALITIES IN SPACE

by Yoshitsugu Kanemoto

1.  Introduction

2.  Externalities between Producers and Households

3.  Externalities among Households

4.  Externalities among Producers

5.  Externalities Associated with Urban Transportation

6.  Measuring the Benefits and Costs of Externalities

References

URBAN TRANSPORTATION ECONOMICS

by Kenneth A. Small

1.  Introduction

1.1.  The scope of urban transportation economics

1.2.  The scope of this review

2.  Travel Demand

2.1.  Aggregate models

2.2.  Disaggregate models

2.3.  Examples of disaggregate models

2.4.  Assessment of travel-demand models

2.5.  Value of time

2.6.  Conclusions

3.  Costs

3.1.  The nature of cost functions

3.2.  Cost functions for public transit

3.3.  Highway travel: congestion technology

3.4.  Highway travel: short-run variable costs

3.5.  Highway travel: long-run costs

3.6.  Intermodal cost comparisons

4.  Pricing, Investment, and Industrial Organization

4.1.  Congestion pricing of highways

4.2.  Pricing of parking

4.3.  Pricing of public transit

4.4.  Capacity choice for highways

4.5.  Cost-benefit analysis

4.6.  Regulation and private provision of transportation

4.7.  Conclusions

5.  Conclusion: Toward Unified Models of Urban Transportation

Appendix:   Long-Run Cost Functions with Queueing and Endogenous Scheduling

References

Acknowledgment

Selected Symbols and Abbreviations

FACILITY LOCATION ANALYSIS

by Pierre Hansen, Martine Labbé, Dominique Peeters and Jacques-FrançoisThisse

Introduction

1.  Facility Location in Continuous Spaces

1.1.  Introduction

1.2.  The minisum problem

1.3.  Extensions

1.4.  The minimax problem

1.5.  The multifacility location problem

1.6.  The location of an obnoxious facility

2.  Facility Location in Finite Spaces

2.1.  Introduction

2.2.  The uncapacitated facility location problem (UFLP)

2.3.  Extensions

2.4.  The K-median problem

2.5.  The covering problems

2.6.  The K-center problem

2.7.  Spatial-interaction-based allocation models

3.  Facility Location on Networks

3.1.  Introduction

3.2.  The model

3.3.  The minisum problem

3.4.  The minimax problem

3.5.  The multifacility location problems

3.6.  Miscellaneous problems

4.  Conclusion

References

SYSTEMS OF CITIES AND INTER-CITY TRADE

by J. Vernon Henderson

Introduction

Part One – Positive Analyses

1.  Cities and the structure of the economy

2.  Basic properties of a system of cities

3.  Economic growth and international trade

Part Two – Normative Properties

1.  A static model

References