Urban Giantism The previous model suggests that in a country with poor transportation network, there might emerge one or two big cities. Most of the firms and economic activities might be concentrated in one or two big cities. This may not be efficient from the social point of view. By divers ifying the location of firms and economic activities one can reduce the cost of production and commuting as well as congestion. Urban giantism may lead to first-city bias, in which the biggest city receives a disproportionate share of public investment, which aggravates the problem of urban giantism.