Abstract
The paper examines, within the framework of the standard von Thünen type model with no congestion, the market equilibrium urban form under a regime of commuters who use both the auto and the transit modes, but with no transfers, for their journey to work. There is an extension, however, in that households are assumed to be operating under both an income constraint and a time constraint. The rent and density gradients are obtained in closed forms.
Comparative statics are performed, and some policies regarding parking fees, pricing, and investment in the two modes are tested. It is shown that the city may consist of three rings, where the residential location of the user of one mode is split by the residences of the users of the second mode.
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