Agent-based urban land markets

Agent's pricing behavior, land prices and urban land use change

Journal article (2009)

Authors

T. Filatova University of Twente
Dawn C. Parker George Mason University
Anne Van Der Veen University of Twente
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Land Use Agent-Based Computational Economics Land Rent Gradient Location Choice Spatial Simulation Urban Land Market
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Published Date

2009

Language

English

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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.