IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

A bi-level model of the relationship between transport and residential location

  • Chang, Justin Sueun
  • Mackett, Roger Laurence
Registered author(s):

    This paper explores a bid-rent network equilibrium model which represents the relationship between transport and residential location. The relationship is examined in terms of the competition of decision-makers for locations. The model discusses difficulties in addressing the characteristics of locations, particularly heterogeneity and indivisibility. A hedonic interpretation is included as a way to resolve these challenges. The model investigates the process in which households make their decisions. This process is shown as an n-player non-cooperative game, following the Nash equilibrium for this game, which is defined as well. The game is accompanied by the systematic interactions between transport and land-use. A mutual adjustment process represents these interactions. The three components are structured by a bi-level mathematical program. The final formulation is interpreted as an oligopolistic Cournot game of which consequence is an approximation of the n-player non-cooperative game. The functional relationship between the decision variables of the upper and the lower levels of the bi-level program produces endogenously-determined transport impedance and locational attractiveness. The endogenous network performance indices of the model are expected to overcome the lack of a realistic network equilibrium description in the existing models. A path-based heuristic algorithm and a simple numerical example are presented. Finally, some concluding remarks are given.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/B6V99-4FWS76P-1/2/f8aa4492865a250dbc64f9f30ffed8a9
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 40 (2006)
    Issue (Month): 2 (February)
    Pages: 123-146

    as
    in new window

    Handle: RePEc:eee:transb:v:40:y:2006:i:2:p:123-146
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
    Web: https://shop.elsevier.com/order?id=548&ref=548_01_ooc_1&version=01

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. John M. Quigley, 1976. "Housing Demand in the Short Run: An Analysis of Polytomous Choice," NBER Chapters, in: Explorations in Economic Research, Volume 3, number 1, pages 76-102 National Bureau of Economic Research, Inc.
    2. Lee, Kyu Sik, 1982. "A model of intraurban employment location: An application to Bogota, Colombia," Journal of Urban Economics, Elsevier, vol. 12(3), pages 263-279, November.
    3. Yang, Hai & Yan Kong, Hoi & Meng, Qiang, 2001. "Value-of-time distributions and competitive bus services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(6), pages 411-424, December.
    4. Oppenheim, Norbert, 1993. "Equilibrium trip distribution/assignment with variable destination costs," Transportation Research Part B: Methodological, Elsevier, vol. 27(3), pages 207-217, June.
    5. Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, January.
    6. Gross, David J., 1988. "Estimating willingness to pay for housing characteristics: An application of the Ellickson bid-rent model," Journal of Urban Economics, Elsevier, vol. 24(1), pages 95-112, July.
    7. Earnhart, Dietrich, 2002. "Combining Revealed and Stated Data to Examine Housing Decisions Using Discrete Choice Analysis," Journal of Urban Economics, Elsevier, vol. 51(1), pages 143-169, January.
    8. Kita, Hideyuki, 1999. "A merging-giveway interaction model of cars in a merging section: a game theoretic analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(3-4), pages 305-312, April.
    9. Anas, Alex, 1983. "Discrete choice theory, information theory and the multinomial logit and gravity models," Transportation Research Part B: Methodological, Elsevier, vol. 17(1), pages 13-23, February.
    10. M Los, 1979. "Combined residential-location and transportation models," Environment and Planning A, Pion Ltd, London, vol. 11(11), pages 1241-1265, November.
    11. Kim, Tschangho John, 1983. "A combined land use-transportation model when zonal travel demand is endogenously determined," Transportation Research Part B: Methodological, Elsevier, vol. 17(6), pages 449-462, December.
    12. H Morisugi & T Yoshida, 1986. "Forms of utility function for residential behavior analysis and neighborhood benefits estimation," Environment and Planning A, Pion Ltd, London, vol. 18(1), pages 53-62, January.
    13. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    14. Chattopadhyay, Sudip, 1998. "An Empirical Investigation into the Performance of Ellickson's Random Bidding Model, with an Application to Air Quality Valuation," Journal of Urban Economics, Elsevier, vol. 43(2), pages 292-314, March.
    15. repec:cup:cbooks:9780521346627 is not listed on IDEAS
    16. D E Boyce & F Southworth, 1979. "Quasi-dynamic urban-location models with endogenously determined travel costs," Environment and Planning A, Pion Ltd, London, vol. 11(5), pages 575-584, May.
    17. Lundqvist, Lars & Mattsson, Lars-Goran, 1983. "Transportation systems and residential location," European Journal of Operational Research, Elsevier, vol. 12(3), pages 279-294, March.
    18. Smith, M. J., 1979. "The existence, uniqueness and stability of traffic equilibria," Transportation Research Part B: Methodological, Elsevier, vol. 13(4), pages 295-304, December.
    19. Blackley, Paul R., 1985. "The demand for industrial sites in a metropolitan area: Theory, empirical evidence, and policy implications," Journal of Urban Economics, Elsevier, vol. 17(2), pages 247-261, March.
    20. Bliemer, Michiel C. J. & Bovy, Piet H. L., 2003. "Quasi-variational inequality formulation of the multiclass dynamic traffic assignment problem," Transportation Research Part B: Methodological, Elsevier, vol. 37(6), pages 501-519, July.
    21. Yang, Hai & Bell, Michael G. H., 2001. "Transport bilevel programming problems: recent methodological advances," Transportation Research Part B: Methodological, Elsevier, vol. 35(1), pages 1-4, January.
    22. Bell, Michael G. H. & Cassir, Chris, 2002. "Risk-averse user equilibrium traffic assignment: an application of game theory," Transportation Research Part B: Methodological, Elsevier, vol. 36(8), pages 671-681, September.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:40:y:2006:i:2:p:123-146. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.