Abstract
Following Beckmann's achievement [2] (1952), Beckmann and Puu [3] (1985) presented a new analytical method to study formation of urban configurations in a two dimensional continuous space, focusing on flows of commodities. However, consideration of household and firm locations is not necessarily sufficient, resulting in reconsideration from a new urban economics point of view. Instead, this article introduces bid rent functions of households and firms that are familiar in the new urban economics, and then studies how the results of Beckmann and Puu are modified with the theory of partial differential equations. New findings of this paper include the solution of the model and the equilibrium conditions.
JEL Classification: R10, R12, R14
