Agent-based urban land markets: agent's pricing behaviour, land prices and urban land use change

Tatiana Filatova, Dawn Parker, A. van der Veen

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Abstract

We present a new bilateral agent-based land market model, which moves beyond previous work by explicitly modeling behavioral drivers of land-market transactions on both the buyer and seller sides; formation of bid prices (of buyers) and ask prices (of sellers); and the relative division of the gains from trade from the market transactions. We analyze model output using a series of macro-scale economic and landscape pattern measures, including land rent gradients estimated using simple regression models. We first demonstrate that our model replicates relevant theoretical results of the traditional Alonso/Von Thünen model (structural validation). We then explore how urban morphology and land rents change as the relative market power of buyers and sellers changes (i.e., we move from a 'sellers' market' to a 'buyers' market'). We demonstrate that these strategic price dynamics have differential effects on land rents, but both lead to increased urban expansion.
Original languageUndefined
Pages (from-to)1-30
JournalJournal of artificial societies and social simulation
Volume12
Issue number1,3
Publication statusPublished - 2009

Keywords

  • Agent-Based Computational Economics
  • Location Choice
  • Urban Land Market
  • IR-61113
  • Land Use
  • Spatial Simulation
  • METIS-249416
  • Land Rent Gradient

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