The nonlinear interactive dynamic process of settlement formation is a
fundamental issue in spatial analysis. Our proposed model integrates
the economic and migratory sectors as endogenous variables to describe
the evolution of continuous population distributions as a self-organi
zing process. The model has been designed as follows: an ensemble of p
opulations is described by the respective population densities over th
e plane, with the latter being tessellated into equivalent unit cells.
Populations produce commodities, and the net incomes of the individua
ls depend on local production costs, including fixed costs and the tra
nsportation costs between the places of production to consumption. The
refore, local income depends on population densities. The economy is a
ssumed to be in a momentary quasi-equilibrium with reference to the po
pulation distribution. The evolution of the population distribution is
described by nonlinear migratory equations of motion. The driving for
ces within these equations are local differences in individual incomes
. These motivate individuals to migrate to locations of optimal income
. This process leads to the evolution of spatially heterogeneous popul
ation distributions forming the settlements.