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Symmetry Breaking as "Master Switch" for Agglomeration Policy

Akifumi Kuchiki* and Hideyoshi Sakai

An agglomeration is an organization composed of segments that can be classified into the four categories of infrastructure, institutions, human resources and living conditions. The master switch for agglomeration policy is the construction of segments that satisfy the ‘symmetry breaking’ conditions in a monopolistic framework within new economic geography. We use symmetry breaking conditions derived from the synthesized general equilibrium model of Krugman and Alonso using quasi-linear log utility. The activation of the master switch in the construction of an urban agglomeration can break the symmetry equilibrium, leading to a cumulative process of agglomeration segment construction. In the case of an urban agglomeration such as Sapporo, Japan, the segments constituting the master switch are the development of the area surrounding Sapporo Station to lower the elasticity of substitution between any two varieties and Japan Railway reconstruction and the revision of its timetable to lower the commuting costs.

Published Date: 2023-05-22; Received Date: 2023-04-20