Modal choice,location demand,and income

W. Alonso's monocentric city model (″Location and Land Use,″ Harvard Univ. Press, Cambridge, Mass. (1964)) is extended to explain the simultaneous choice of residential location, housing quantity, and work trip mode. Mode is conceived of as a continuous choice variable, each mode being characterized by a speed and a fare. Mode is shown not to be independent of location, so that location “prices” should be included in the mode demand equations used in urban transportation planning. Comparative statics of the model with respect to income are presented. The earlier finding that the effect of income increase on location is indeterminate is confirmed.