This paper proposes a new approach to city formation by modifying conventional network games to suit particularly the study of spatial configurations and urban structures. While we postulate uncompensated knowledge spillovers as the main driving force of population agglomeration, we depart from...

The modern literature on city formation and development, for example the New Economic Geography literature, has studied the agglomeration of agents in size or mass. We investigate agglomeration in sorting or by type of worker, that implies agglomeration in size when worker populations differ by...