A Dynamic Analysis of Multiple-Center Formation in a City

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This study intended to undetake a dynamic analysis of the formation of multiple business centers in a city. Provided the centers of the CBD and the second business district (SBD) are prespecified in a linear city, an optimizing model was presented where the locations of new firms and households are determined so as to maximize the net rental revenue over the planning horizon. There are two alternative patterns of growth of the SBD.In both patterns, firms are located only in the CBD at the early stages of planning period. The difference between the two patterns occurs in later stage of time horizon when the number of firms in a city exceeds some threshold level : i.e., the CBD as well as the SBD expands (pattern 1) and only SBD grows (pattern 2). For the purpose of clarifying the conditions for each pattern to emerge, a numerical simulation analysis was performed. The result, in general, depens on the relative sizes of communication cost, transport cost, the location of a center of the SBD and so on : the higher the transport cost, the higher the growth rate of the subcenter ; the higher the communication cost, the further the CBD expands ; the further from the CBD the center of the SBD, the slower the speed of the formation of the SBD.This model can be used to evaluate the effects of establishing a subcenter by comparing the total rental revenue between the two cases, when a subcenter is established and when it it not established.