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Document Figure A.2 Page 107 thanks to its relative lack of rivals for its agricultural hinterland. This is why the two emergent cities are almost opposite one another and therefore why the eventual pattern is one of two central places almost symmetrically placed. Does this case always produce the same result? Not exactly. In the course of a number of runs with these parameter values, two concentrations 5 apart occurred about 60 percent of the time, two concentrations 6 apart occurred on almost all other occasions. At rare intervals a run would lead to 3 equally spaced concentrations. Clearly the model economy shows multiple equilibria both in terms of which locations play which role and to file:///D|/Export3/www.netlibrary.com/nlreader/nlreader.dll@bookid=409&filename=page_107.html [4/18/2007 10:31:54 AM]
Document some extent even in terms of the equilibrium spatial structure. Nonetheless, it is also clear that there is a systematic tendency toward formation of central places roughly evenly spaced across the landscape. What happens if we change the parameters? I have tried runs on each of three alternative cases: i. Less differentiated products ( σ= 2, τ = .2, µ= .2): In this case (in which firms have more market power, and in which the equilibrium degree of scale economies is also larger), all runs produced only a single city. ii. A larger manufacturing share ( σ = 4, τ = .2, µ = .4): In this case, in which one would expect the backward and forward linkages driving agglomeration to be stronger, we also consistently get only a single city. iii. Lower transport costs ( σ = 4, τ = .1, µ= .2): In this case we would expect there to be less incentive to set up multiple urban centers, and again all runs produce only a single city. Page 108 What do we learn? We have already seen, earlier in the appendix, how both the market potential and cumulative process approaches are more or less validated in this model. Now we see not only that the same approach can produce multiple agglomerations, but that something resembling central-place theory also emerges, because the dynamic forces do tend to produce agglomerations that are roughly evenly spaced across the landscape. file:///D|/Export3/www.netlibrary.com/nlreader/nlreader.dll@bookid=409&filename=page_108.html [4/18/2007 10:31:54 AM]
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