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A Cellular Automata Simulation of the 1990s Russian Housing Privatization Decision

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Author Info

  • Maria Plotnikova

    ()
    (Department of Economics, University of Reading)

  • Chokri Dridi

    ()
    (Department of Rural Economy, University of Alberta)

Abstract

The study uses a computational approach to study the phenomenon of housing privatization in Russia in the 1990s. As part of the housing reform flats in multi-family buildings were offered to their residents free of payment. Nevertheless rapid mass housing privatization did not take place. While this outcome admits a number of explanations this analysis emphasizes the fact that the environment in which the decision-making households were operating had a high degree of uncertainty and imposed a high information-processing requirement on the decision-makers. Using the bounded rationality paradigm, the study builds a case for a cellular automata simulation of household decision-making in the context of housing privatization reforms in Russia in the 1990s. Cellular automata is then used to simulate a household’s decision to become the owner of its dwelling.

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Bibliographic Info

Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2010-05.

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Length: 28 pages
Date of creation: 01 Aug 2010
Date of revision:
Handle: RePEc:rdg:emxxdp:em-dp2010-05

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Keywords: cellular automata; complex systems; housing reform; Russia; simulation;

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  1. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  2. R White & G Engelen, 1993. "Cellular automata and fractal urban form: a cellular modelling approach to the evolution of urban land-use patterns," Environment and Planning A, Pion Ltd, London, vol. 25(8), pages 1175-1199, August.
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