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Your Place in Space: Classroom Experiment on Spatial Location Theory

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Author Info

  • Margo Bergman
  • G. Dirk Mateer
  • Michael Reksulak
  • Jonathan C. Rork
  • Rick K. Wilson
  • David Zirkle

Abstract

The authors detail an urban economics experiment that is easily run in the classroom. The experiment has a flexible design that allows the instructor to explore how congestion, zoning, public transportation, and taxation levels determine the bid-rent function. Heterogeneous agents in the experiment compete for land use utilizing a simple auction mechanism. Using the data that is collected, a bid-rent function is derived, and the experimental treatment is altered over the course of three sessions to uncover core concepts in urban economics. Moreover, this provides a tangible experience that can be used to help undergraduates relate to urban issues such as the steep rent gradient found around many larger colleges and universities.

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File URL: http://excen.gsu.edu/workingpapers/GSU_EXCEN_WP_2008-09.pdf
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Bibliographic Info

Paper provided by Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University in its series Experimental Economics Center Working Paper Series with number 2008-09.

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Length: 29
Date of creation: May 2008
Date of revision:
Handle: RePEc:exc:wpaper:2008-09

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