2020 Volume 76 Issue 4 Pages 282-298
In new economic geography, economic agglomeration is known to be governed by bifurcation. However, the majority of theoretical researches focuses on two-place economy and racetrack economy and abstract from geographical advantage which are pervasive in the real world. In this paper, we focus on a long narrow economy, in which discrete locations are equally spread over a line segment. By group-theoretic bifurcation theory, we elucidate the bifurcation mechanism of monocentric city on this economy analytically. Emergence of satellite cities around a primary city is shown to be exist. By numerical analysis of Forslid & Ottaviano model with replicator dynamics, we show that the higher the expenditure share of manufactured goods is or the lower the elasticity of substitution is, the farther from the monocentric city satellite cities emerge.