Two-Sector Nonmonocentric Urban Land-Use Model with Variable Density

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Abstract
A two-sector nonmonocentric urban land-use model with variable firms density of business is presented in this paper. This is an extension of the work by Ogawa and Fujita (1978). In this model, households supply labor to firms, and firms pay wages to workers. Firms interact with all others at equal probabilities in the city to produce economic agglomeration. Each firm occupies office space, and the construction cost of office buildings is a function to the power two of the density of firms. By use of these assumptions, together with the generalized notion of bid rent, an equilibrium urban land-use model is formulated. It is shown that three types of configuration exist in equilibrium, which depend on the different values of the parameters.

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