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Agent-Based Urban Land Markets: Agent's Pricing Behavior, Land Prices and Urban Land Use Change

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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 side; 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.

Suggested Citation

  • Tatiana Filatova & Dawn C. Parker & Anne van der Veen, 2009. "Agent-Based Urban Land Markets: Agent's Pricing Behavior, Land Prices and Urban Land Use Change," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 12(1), pages 1-3.
  • Handle: RePEc:jas:jasssj:2008-13-2
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    File URL: http://jasss.soc.surrey.ac.uk/12/1/3/3.pdf
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    Cited by:

    1. SeHoon Lee & Jeong Hee Hong & Jang Won Bae & Il-Chul Moon, 2015. "Impact of Population Relocation to City Commerce: Micro-Level Estimation with Validated Agent-Based Model," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(2), pages 1-5.
    2. Magliocca, Nicholas & McConnell, Virginia & Walls, Margaret, 2015. "Exploring sprawl: Results from an economic agent-based model of land and housing markets," Ecological Economics, Elsevier, vol. 113(C), pages 114-125.
    3. Magliocca, Nicholas & McConnell, Virginia & Walls, Margaret & Safirova, Elena, 2012. "Zoning on the urban fringe: Results from a new approach to modeling land and housing markets," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 198-210.
    4. Bernardo Alves Furtado & Isaque Daniel Eberhardt Rocha, 2017. "An applied spatial agent-based model of administrative boundaries using SEAL," Papers 1702.03226, arXiv.org, revised Mar 2017.
    5. Kii, Masanobu & Nakanishi, Hitomi & Nakamura, Kazuki & Doi, Kenji, 2016. "Transportation and spatial development: An overview and a future direction," Transport Policy, Elsevier, vol. 49(C), pages 148-158.
    6. Marcel Ausloos & Herbert Dawid & Ugo Merlone, 2014. "Spatial interactions in agent-based modeling," Papers 1405.0733, arXiv.org.
    7. Chen, Yong & Irwin, Elena G. & Jayaprakash, Ciriyam, 2011. "Incorporating Spatial Complexity into Economic Models of Land Markets and Land Use Change," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), pages 1-20, December.
    8. Tatiana Filatova & Anne Van Der Veen & Dawn C. Parker, 2009. "Land Market Interactions between Heterogeneous Agents in a Heterogeneous Landscape—Tracing the Macro‐Scale Effects of Individual Trade‐Offs between Environmental Amenities and Disamenities," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(4), pages 431-457, December.
    9. Pangallo, Marco & Nadal, Jean-Pierre & Vignes, Annick, 2019. "Residential income segregation: A behavioral model of the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 15-35.
    10. Francis Tseng & Fei Liu & Bernardo Alves Furtado, 2017. "Humans of Simulated New York (HOSNY): an exploratory comprehensive model of city life," Papers 1703.05240, arXiv.org, revised Mar 2017.
    11. Malik, Ammar A. & Crooks, Andrew T. & Root, Hilton L., 2013. "Can Pakistan have creative cities? An agent based modeling approach with preliminary application to Karachi:," PSSP working papers 13, International Food Policy Research Institute (IFPRI).
    12. Ammar Malik & Andrew Crooks & Hilton Root & Melanie Swartz, 2015. "Exploring Creativity and Urban Development with Agent-Based Modeling," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(2), pages 1-12.
    13. Toon Haer & W. J. Wouter Botzen & Hans de Moel & Jeroen C. J. H. Aerts, 2017. "Integrating Household Risk Mitigation Behavior in Flood Risk Analysis: An Agent‐Based Model Approach," Risk Analysis, John Wiley & Sons, vol. 37(10), pages 1977-1992, October.
    14. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91, February.
    15. Rémi Lemoy & Charles Raux & Pablo Jensen, 2016. "Exploring the polycentric city with multi-worker households: an agent-based microeconomic model," Post-Print hal-00602087, HAL.
    16. Filatova, Tatiana & Parker, Dawn Cassandra & van der Veen, Anne, 2011. "The Implications of Skewed Risk Perception for a Dutch Coastal Land Market: Insights from an Agent-Based Computational Economics Model," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), pages 1-19, December.
    17. Zhi Dong & Tien Sing, 2014. "Developer Heterogeneity and Competitive Land Bidding," The Journal of Real Estate Finance and Economics, Springer, vol. 48(3), pages 441-466, April.
    18. Miguel A. Fuentes & Claudio J. Tessone & Bernardo A. Furtado, 2019. "Policy Modeling and Applications: State-of-the-Art and Perspectives," Complexity, Hindawi, vol. 2019, pages 1-11, February.

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