Reinterpretation of Commercial Equilibrium Model Based on Social Benefit

Generalization Considering Nest Structure of Commercial Activities and Locational Capacity

Abstract

This study illustrates reinterpretation of Harris and Wilson's balancing-mechanism based on social benefit. In concrete terms, we exhibit that the market equilibrium distribution of commercial area, obtained by iterating a time-development formula, can also be derived by maximizing a social benefit function. By interpreting these two approaches in an integrated way, we succeed in generalizing the balancing-mechanism. Finally, we run a simple simulation using the generalized model considering nest structures of commercial activities and locational capacity.