Abstract

ABSTRACT The model departs from the new urban economics (NUE) by allowing a single economic agent (a G‐agent, e.g., a corporate headquarters) to contact every location with equal frequency: the G‐agent is allowed to travel in every direction. A NUE‐like assumption requires all other agents to contact the G‐agent, in which case, the G‐agent must locate at the center, i.e., the CBD is necessarily endogenous. The evolution of subcenters begins with growth in demand which raises the level of bid rents by enough to outbid agriculture. After one agent moves to the suburbs, interdependency among agents insures that the incipient suburban center becomes more attractive to other agents.

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