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Cooperative dynamics of neighborhood economic status in cities

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  • Anand Sahasranaman
  • Henrik Jeldtoft Jensen

Abstract

We significantly extend our earlier variant of the Schelling model, incorporating a neighborhood Potential function as well as an agent wealth gain function to study the long term evolution of the economic status of neighborhoods in cities. We find that the long term patterns of neighborhood relative economic status (RES) simulated by this model reasonably replicate the empirically observed patterns from American cities. Specifically, we find that larger fractions of rich and poor neighborhoods tend to, on average, retain status for longer than lower- and upper-middle wealth neighborhoods. The use of a Potential function that measures the relative wealth of neighborhoods as the basis for agent wealth gain and agent movement appears critical to explaining these emergent patterns of neighborhood RES. This also suggests that the empirically observed RES patterns could indeed be universal and that we would expect to see these patterns repeated for cities around the world. Observing RES behavior over even longer periods of time, the model predicts that the fraction of poor neighborhoods retaining status remains almost constant over extended periods of time, while the fraction of middle-wealth and rich neighborhoods retaining status reduces significantly over time, tending to zero.

Suggested Citation

  • Anand Sahasranaman & Henrik Jeldtoft Jensen, 2017. "Cooperative dynamics of neighborhood economic status in cities," PLOS ONE, Public Library of Science, vol. 12(8), pages 1-15, August.
  • Handle: RePEc:plo:pone00:0183468
    DOI: 10.1371/journal.pone.0183468
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    References listed on IDEAS

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    Cited by:

    1. Shiro Horiuchi, 2021. "Bridging of different sites by bohemians and tourists: analysis by agent-based simulation," Journal of Computational Social Science, Springer, vol. 4(2), pages 567-584, November.
    2. Anand Sahasranaman & Vishnu Prasad & Aditi Balachander, 2020. "Housing Choice as a Function of Risks Confronting Low-income Households," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 19(1), pages 100-118, April.
    3. Anand Sahasranaman & Henrik Jeldtoft Jensen, 2018. "Ethnicity and wealth: The dynamics of dual segregation," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-22, October.

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