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...

With the growing recognition of the role played by geography in all sorts of economic problems, there is strong interest in measuring the size and scope of local spillovers (i.e., simple anonymous agglomeration or congestion effects, or more complicated interactions between individuals or firms...