ABSTRACT
The power law is a common phenomenon in the natural and social sciences as well as in urban systems found in the real world. The chapter explores the correlation between power law and increasing return, it simulated the formation of urban settlement systems using random growth models based on computer experimentation and mathematical simulation. The forces acting on firms in a single industry together are called localization economies, which are external for manufacturers while internal for the whole industry. Urbanization economies mean every industry in a city can benefit from the enlargement of the city scale; for example, some high-level urban facilities that only exist in large cities can benefit all their citizens. The two basic causes of economies of agglomeration, the scale effect and increasing return are closely related to each other. In terms of increasing return, the so-called "camps" may have no correlation in space, such as users of a product.
