3 DPOTO is the representative variable of both the residential and workplace lo cation of families (broken down by family type). Model (1) (5) is based on the hypothesis that not all the families are likely to find an optimal residential location: some attain a higher utility level than expected, while others remain below it. In this way, the model tries to describe a real market, providing a measure of demand and supply disequilibrium based on the difference between the real and the expected utility of families. A diagrammatic representation of model (1) - (5) is given in fig. 1. DPOTO Industry and service submodels Transportation submodel Housing and land-use submodels Figure 1 - Structure of the residential location submodel