Abstract
Search theory is used to model spatial interactions between residential and employment locations. A model for an urbanized region in which employment is concentrated in a number of different centers is developed. It is shown that in this model wasteful or excess commuting occurs as a consequence of maximizing behavior of both employers and workers. The model is compatible with a spatial equilibrium. If informational problems disappear, the labor market subdivides into a number of conventional monocentric cities. An example concerning an urban area with two employment centers is discussed in detail. The model appears to be robust to relaxations of the assumed absence of residential and job mobility.
| Original language | English |
|---|---|
| Pages (from-to) | 1-22 |
| Number of pages | 22 |
| Journal | Journal of Urban Economics |
| Volume | 43 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 1 Jan 1998 |
Funding
*Comments by Peter Kooreman, two anonymous referees, and the editor are gratefully acknowledged. An earlier version of the paper was presented at the Regional Science Association RSA) congress in Groningen, August 1994. All errors are the author's responsibility. 1See, for instance Rouwendal and Rietveld w15x.
