Abstract

Then purpose of this paper is to find an optimal commuting network in a two-dimensional city. In their commuting to the business district, households choose between two modes of travel: road and rail. Road is slow but densely provided. Rail is fast, however, unlike the previous literature, it is only accessible from discrete points, namely, stations. This generates a new question: where to locate stations optimally. This paper provides a general algorithm to solve for optimal network of a city as well as solutions under specific assumptions on the household's utility function and city shape. The paper then analyzes comparative statics of a population change.