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Introducing Preference Heterogeneity into a Monocentric Urban Model: An Agent-Based Land Market Model

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Simulating Interacting Agents and Social Phenomena

Part of the book series: Agent-Based Social Systems ((ABSS,volume 7))

Abstract

This paper presents an agent-based urban land market model. We first replace the centralized price determination mechanism of the monocentric urban market model with a series of bilateral trades distributed in space and time. We then run the model for agents with heterogeneous preferences for location. Model output is analyzed using a series of macro-scale economic and landscape pattern measures, including land rent gradients estimated using simple regression. We demonstrate that heterogeneity in preference for proximity alone is sufficient to generate urban expansion and that information on agent heterogeneity is needed to fully explain land rent variation over space. Our agent-based land market model serves as a ­computational laboratory that may improve our understanding of the ­processes generating patterns observed in real-world data.

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Notes

  1. 1.

    CBD is assumed to be exogenously given. For future work it might be interesting to explore model dynamics with endogenous formation of CBD and suburban centers.

  2. 2.

    In this particular paper we replicate the monocentric urban model that assumes that sellers are agricultural land owners and that their ask price is the same for every cell. However, the code of our program integrates the possibility to model the formation of ask prices for households and agricultural sellers.

  3. 3.

    Proximity is defined as P = D max + 1 − D, where Dis distance of a cell to the CBD.

  4. 4.

    The justification and properties of this demand function are discussed in detail in [3].

  5. 5.

    For extended description of the event sequencing see [3].

  6. 6.

    An equation that quantitatively characterizes the transaction price at a given distance from the city center, estimated using linear regression analysis. The land gradient is a typical characteristic of urban spatial structure analyzed both theoretically and empirically [2].

  7. 7.

    The results of the linear regression model showed the best fit. The R 2values for linear, log-log, semi-log and inverse semi-log functional forms were 0.9923, 0.8166, 0.9738 and 0.8647 respectively.

  8. 8.

    We also ran the model with the normal distribution of preferences. The results were qualitatively similar.

  9. 9.

    A formal statistical test of the difference in significance between these estimated coefficients between the multiple model runs for both experiments is conceptually possible, but is beyond the scope of this paper.

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Acknowledgements

Funding from NWO-ALW (LOICZ-NL) project 014.27.012 and the US National Science Foundation grants 0414060 and 0813799 is gratefully acknowledged.

Author information

Authors and Affiliations

  1. Centre for Studies in Technology and Sustainable Development, Faculty of Management and Governance, University of Twente, Drienerlolaan 5, 7522 NB, Enschede, The Netherlands

    Tatiana Filatova

  2. School of Planning, University of Waterloo, 200 University Ave. West, Waterloo, Ont., N2L 3G1, Canada

    Dawn C. Parker

  3. Department of Water Engineering and Management, University of Twente, Drienerlolaan 5, 7522 NB, Enschede, The Netherlands

    Anne van der Veen

  4. International Institute for Geo-Information Science and Earth Observation, University of Twente, Hengelosestraat, 99, 6, 7500 AA, Enschede, The Netherlands

    Anne van der Veen

Authors
  1. Tatiana Filatova
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  2. Dawn C. Parker
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  3. Anne van der Veen
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Corresponding author

Correspondence to Tatiana Filatova .

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Editors and Affiliations

  1. Department of Informatics and Engineering, The University of Electro-Communications, 1-5-1 Chofugaoka, Chofu, Tokyo, 182-8585, Japan

    Keiki Takadama (Associate Professor) (Associate Professor)

  2. Center for Social Complexity, George Mason University, 4400 University Drive, MSN 6B2, Fairfax, Virginia, 22030, USA

    Claudio Cioffi-Revilla (Professor) (Professor)

  3. Head of LISC (Laboratoire d’Ingénierie des Systèmes Complexes), Cemagref 24 avenue des Landais, 50085, 63172, Aubière Cedex 1, France

    Guillaume Deffuant

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Filatova, T., Parker, D.C., van der Veen, A. (2010). Introducing Preference Heterogeneity into a Monocentric Urban Model: An Agent-Based Land Market Model. In: Takadama, K., Cioffi-Revilla, C., Deffuant, G. (eds) Simulating Interacting Agents and Social Phenomena. Agent-Based Social Systems, vol 7. Springer, Tokyo. https://doi.org/10.1007/978-4-431-99781-8_8

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  • DOI: https://doi.org/10.1007/978-4-431-99781-8_8

  • Publisher Name: Springer, Tokyo

  • Print ISBN: 978-4-431-99780-1

  • Online ISBN: 978-4-431-99781-8

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