A bi-level model of the relationship between transport and residential location
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.
Volume (Year): 40 (2006)
Issue (Month): 2 (February)
|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|
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.:
- 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.
- Oppenheim, Norbert, 1993. "Equilibrium trip distribution/assignment with variable destination costs," Transportation Research Part B: Methodological, Elsevier, vol. 27(3), pages 207-217, June.
- 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.
- 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.
- M Los, 1979. "Combined residential-location and transportation models," Environment and Planning A, Pion Ltd, London, vol. 11(11), pages 1241-1265, November.
- Fujita,Masahisa, 1991.
"Urban Economic Theory,"
Cambridge University Press, number 9780521396455, November.
- Fujita,Masahisa, 1989. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521346627, Diciembre.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- D E Boyce & F Southworth, 1979. "Quasi-Dynamic Urban-Location Models with Endogenously Determined Travel Costs," Environment and Planning A, , vol. 11(5), pages 575-584, May.
- 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.
- 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..
- 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.
- 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.
- 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.
- 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.
- 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.
- Lundqvist, Lars & Mattsson, Lars-Goran, 1983. "Transportation systems and residential location," European Journal of Operational Research, Elsevier, vol. 12(3), pages 279-294, March. Full references (including those not matched with items on IDEAS)