Academic literature on the topic 'Bid-rent theory'

The von Thünen model of agricultural land use is reformulated in this paper as an investment decision in which the objectives of farmers range from total risk-aversion to profit-maximization. By means of a variant of the mean-variance model of contemporary portfolio theory, it is demonstrated that individual bid-rent functions depend on the nature of a farmer's utility function. Because farmers' objectives affect their bid-rent functions, the spatial pattern of agricultural production is also affected. The conventional result of the von Thünen model is shown to be a special case of the more general portfolio model.

Alonso's bid-rent theory and the discrete-choice random-utility theory appear in the literature as well-established alternative frameworks to model urban land use. As both approaches share the support of microeconomic theory, the main issue addressed in this paper is the theoretical comparison of the two approaches. It is demonstrated that in perfectly competitive land markets these approaches are equivalent, therefore they should be understood as complementary rather than alternative. The case of markets subject to speculative land prices is then explored for the cases of speculative supply and/or speculative demand, with the discovery that both approaches are theoretically equivalent in every case studied, thus extending the previous conclusion for the general case. These conclusions provide the base for an integrated and more comprehensive urban economic theory and for the bid-choice land-use model.

Purpose The purpose of the paper is to investigate a cross section of Hungarian settlement-level unit housing prices with a special emphasis on measuring the effect of population and its growth, along with accessibility to the centre of an aggregated spatial unit such as a micro-region, county or region, for the period of 2001-2011. Design/methodology/approach The analysis uses cross-sectional ordinary least squares techniques with Moulton-corrected standard errors. The estimation is guided by the implications of a simplified monocentric urbanized area framework following the model of DiPasquale and Wheaton (1996), and the econometric model is augmented with population growth rate at the settlement level to bridge the theory explaining rents and data base containing prices instead. Findings The location is a key factor in determining housing prices: living 10 min further from the centre results in 11 per cent cheaper housing. When estimating bid-rent curves, results show that it is crucial to control for city size and the income effect. The elasticity of housing price with respect to city size is 0.09 according to our preferred model. Population growth has an asymmetric impact on housing prices: municipalities with positive expected population growth have higher prices today. Practical implications Estimating the quantitative relationship between commuting time and housing price is crucial for a cautious infrastructure development. The benefits of improved roads and faster access could be capitalized in appreciating the housing stock. Estimating the slope of the bid-rent curve is one possible ex ante quantification of the benefits of a public development. Originality/value One contribution of this research is providing empirical evidence to surprisingly limited applied work in the field of (monocentric) urban models using data from the CEE region. Second, to the best of the authors’ knowledge, this is the first study to investigate Hungarian settlement-level unit prices from an urban economic point of view.

Urban sprawl and income segregation are two undesired urban patterns that occur during urban development. Empirical studies show that income level and inequality are positively correlated with urban sprawl and income segregation, respectively. However, the relationship between urban sprawl and income segregation is not only rarely investigated but also shows ambiguous empirical results when it is. Therefore, in this study, we built a stylized agent-based model with individual behaviours based on Alonso’s bid rent theory and ran simulations with different combinations of income level and income inequality. We measured the overall emergent patterns with indicators for urban sprawl and income segregation. The model confirms the established positive correlations between income level and urban sprawl and between income inequality and segregation. Furthermore, the model shows a negative correlation between urban sprawl and income segregation under free market conditions. The model indicates that without any policy implementation, a city will either suffer from urban sprawl or income segregation. Thus, this study serves as a starting point to study the effects of different urban planning policies on these two urban problems.

<h1>This study aims to determine the influence of location, rental rates, as well as parking revenues to the shopping center's financial performance as measured by proxy Return on Investment (ROI) in the city of Surabaya and Sidoarjo. In theory, this study aims to obtain empirical evidence over bid rent theory first proposed by Thünen (1826) and the central location theory proposed by Christaller (1933) so as to benefit the investors, managers, and academics. This study uses secondary data sources. The analysis tool used is regression. Hypothesis testing results show that the strategic location of the shopping center increased financial performance, measured by using a proxy ROI (Return on Investment), while the price of rental and parking revenues shopping center does not have a significant impact on the financial performance. This supported the theory of transaction cost that every financial transaction must consider the cost factor that can lead to lower financial ratios, in addition to the queuing theory, which considers that any value of investment made to reduce queues should consider the return on investment along with factors of customer satisfaction and reducing the volume of the queue. The test results cluster analysis showed that the shopping centers located in residential centers have higher rental rates and earn higher parking revenues when compared with the shopping center located in the downtown area.</h1><p><strong><em>Keywords</em></strong><em>: shopping centers, locations, rental rates, parking income, return on investment, financial performance</em></p>

Amidst the debates on the death or resurgence of public spaces emerges a significant question: how could public spaces that function at different urban scales and cater for diverse collective needs be provided? This article explores the roles and potentials of temporary public spaces in meeting diverse challenges related to the supply and use of urban open spaces. Positioning temporary public spaces within the literature on non-conventional public spaces is conducted with the purpose of identifying those spaces' characteristics. The proposed definition of temporary public spaces is based on their dynamic status of use-rights. Moreover, a conceptual framework based on urban land economics and bid rent theory is used to explain how such spaces transform under the exchange of temporary use-rights to activate vacant urban lots for public activities. This conceptual framework is applied in the case of a grass root approach to the supply of temporary public spaces. The context is Beirut, a city that has lost its public spaces due to wars and is trying to reintroduce them through different supply mechanisms. The examples illustrate how homogeneous urban spaces are identified over time and converted into heterogeneous and lively temporary public spaces. These contribute towards conviviality in a highly fragmented and multi-cultural society and animate everyday urban life.

Abstract Most projects, in most walks of life, require the participation of multiple parties. While it is difficult to unite individuals in a common endeavor, some people, who we call “movers and shakers,” seem able to do it. The article specifically examines moving and shaking of an investment project, whose return depends on its quality and the total capital invested in it. We analyze a model with two types of agents: managers and investors. Managers and investors initially form social connections. Managers then bid to buy control of the project, and the winning bidder puts effort into making investors aware of it. Finally, a subset of aware investors are given the chance to invest and they decide whether to do so after receiving private signals of the project’s quality. We first show that connections are valuable since they make it easier for a manager to “move and shake” the project (i.e., obtain capital from investors). When we endogenize the network, we find that while managers are identical ex ante, a single manager emerges as most connected; he consequently earns a rent. In extensions, we move away from the assumption of ex ante identical managers to highlight forces that lead one manager or another to become a mover and shaker. Our theory sheds light on a range of topics, including entrepreneurship, venture capital, and anchor investments.

Urban growth is one of the indicators that reflects human interaction with the environment and has a direct effect on land use change. Continuous demand for space in Nigeria’s urban markets to accommodate shops and other retail outlets used for informal economic activities is accompanied by a change of use. This study examined the impact of informal economic activities on change of use in Bola Ige International Market, Ibadan. The concept of informal economy and the bid rent theory provided the conceptual/theoretical framework for this study. Geographical Information System was used to capture the change of use between 2006 and 2016. Land used for informal economic activities increased from 39.45% in 2006 to 55.35% in 2016, signifying a 15.9% increase. This implies that other land uses have been illegally converted and encroached. Transportation land use decreased from 31.47% in 2006 to 30.28% in 2011 and to 28.73% in 2016. Land used for open space (including parking space, and open trading area) which was 26.7% in 2006 reduced to 20.24% and 11.05% in 2011 and 2016, respectively. Most of the green areas (62.1%) have been converted to informal trading spaces between 2006 and 2016. Illegal change of use was credited to harsh economic condition in the country, and the engagement of the unemployed and retirees in informal sector economic activities. It was suggested that urban managers in conjunction with informed activists, researchers and citizens need to formulate and implement planning regulations that will integrate informal economic activities.

Studies of China’s urban transformation are characterized by diverse interpretations of the relevance of the theory of neoliberalism and continuing tension of epistemology vis-à-vis ontology. This research foregrounds state-society interplay as an alternative lens and analytical tool to understand China’s urban transformation in the context of neoliberalization and global urbanism. The remaking of the Chinese urban landscape is found to be shaped not simply by forces of agglomeration economies or bid-rent dynamism but more by the contestation and negotiation between a fragmented authoritarian state and a rapidly changing society. Existing land users are motivated by a decentralized power of decision-making and a share of the land conveyance income previously monopolized by the state. Contrary to normal expectation, urban redevelopment plays a role of greater significance in the local land supply of those cities in some less advanced regions than in the demographically dense and economically advanced regions. Administratively, urban redevelopment tends to prevail in those modes of land disposition that are either monopolized by the state or subject to close-door negotiation. Redevelopment is less contentious in a “village-in-the-city” where decisions are made by the collective organization internally than the other involving developers externally. Land use intensity and efficiency have been improved along with intensified social exclusion and marginalization. Drawing up the missing link concerning state-society relations may provide new insights to solve the myth of an urban China so ambivalent when seen in the lens of neoliberalism and help reconcile methodological tension in the studies of comparative urbanism involving China.

<p><strong>Abstract.</strong> Urban growth is a complex process created through the interaction of human and environmental conditions. The spatial configuration and dynamic process of urban growth is an important topic in contemporary geographical studies (Thapa and Murayama, 2010). However, urban growth pattern recognition is a challengeable task and it has become one of the major fields in Cartography. Since classical era of cartography, several methods have been employed in modelling and urban growth pattern recognition. It shows that there is no agreement among cartographer or any other spatial scientists on how to map the diverse patterns of urban growth.</p><p>Typical urban theories such as von Thünen’s (1826) bid-rent theory, Burgess’s (1925) concentric zone model, Christaller’s (1933) central place theory, and Hoyt’s (1939) sector model explain the urban structure in different manner. Most of them do not contribute to visualize the urban growth pattern spatiotemporally. Recently, by addressing this limitations, several sophisticated methods are used in urban growth visualization. Among them, morphological spatial pattern analysis (MSPA) is one of emerging raster data analysis methods which allows us to integrate neighbourhood interaction rules in urban growth pattern recognition and visualization. Angel et al. (2010) developed urban land classification (urban, suburban, rural, fringe open space, exterior open space, and rural open space) based on built and non-built land categories and detected three major types of urban growth (infill, extension, and leapfrog). However, developing urban land classifications using binary land use type and recognising only three types of urban growth pattern may be insufficient due to the existence of a higher complexity of urban growth. In such context, the present study introduce a geovisualization approach to map spatial patterns of urban growth using multiple land categories and develops three sub-levels of urban growth pattern for each major urban growth pattern.</p><p>The entire process of urban growth pattern recognition developed in this study can be summarized into three steps (Figure 1): (1) urban land mapping &amp;ndash; Landsat imageries representing two time points (2001 and 2017) were classified into two land categories (built and non-built) and developed into multiple classes using ancillary data, (2) recognizing three major patterns of urban growth (infill, extension, and leapfrog) &amp;ndash; the raster overlay method based on neighbourhood interaction rules, (3) development of sublevels of urban growth &amp;ndash; major three patterns were further developed and visualized nine urban growth patterns, namely low infill (LI), moderate infill (MI), high infill (HI), low extension (LE), moderate extension (ME), high extension (HE), low leapfrog (LL), moderate leapfrog (ML), and high leapfrog (HL). The developed procedure of this study in urban growth pattern recognition was tested using a case study of Colombo metropolitan area, Sri Lanka.</p>

Denna studie undersöker bakomliggande faktorer till lokaliseringsbeslut när kontorssektorn väljer att etablera sig utanför stadens centrum. Vi analyserar hur företagen resonerar och vilka faktorer som påverkar deras beslut. Tidigare forskning och teori talar för att ett centralt läge är det mest optimala för kontorssektorn, då det genererar agglomerationsfördelar. Därför är kontorssektorns betalningsvilja för mark också högst i centrala lägen. På ett icke-centralt läge som Hyllie, skulle företag som är beroende av billiga transporter som tillverkningsindustrin valt att lokalisera sig. Detta då de föredrar närheten till motorvägar över de centrala platserna. Studien är avgränsad till området Hyllie, vilken är lokaliserad i utkanten av Malmö och nära infrastrukturen. Hyllie var också en ödelagd åkermark när de första kontorsföretagens gjorde beslutet om att etablera sig där. Det fanns dock visioner och en framarbetad detaljplan som kommunen skapat tillsammans med marknadens aktörer, där Percy Nilssons engagemang troligen hade en stor inverkan. Därför har kommunen och Percy ingått som respondenter i studien för att även fördjupa författarnas inblick i områdets utveckling. Studien bygger på en kvalitativ ansats där empirisk data har insamlats genom både ostrukturerade- och semistrukturerade intervjuer med ett urval av anställda inom banksektorn. De banker som ingår i studiens urval är Nordea, Sparbanken Syd och Swedbank. Det valda teoretiska materialet har byggt grunden för intervjufrågor och även för analysen. Resultaten av studien visar på att de främsta faktorerna bakom lokaliseringsbeslutet i Hyllie var att platsen ansågs vara strategisk, erbjöd en bra kollektivtrafik samt gav tillgång till de människorna som skulle röra sig i området på grund av bland annat Emporia och arenan.
This study explores the underlying factors that affect location decisions when the office sector chooses to establish outside the city center. We analyze how companies are reasoning and the factors that influence their decisions. Previous research and theory suggest businesses in the office sector prefer central location, as they generate agglomeration advantages. Therefore, the office sector’s willingness to pay for land is highest at central locations. At a non-central location like Hyllie, should companies which rely on cheap transports of goods such as the manufacturing industry choose to locate. This because of that they prefer nearness to motorways over central locations. The essay focuses on the area Hyllie, which is located outside of Malmoe and close to the infrastructure. Hyllie was also a loamy field when the first office companies made the decision to establish there. However, there were visions and a zoning plan that were prepared by the municipality along with the market actors, where Percy Nilsson's involvement probably also had a great impact. Therefore, the municipality and Percy have been included as respondents in this study to deepen the authors' insight into the development of the area. The essay is based on a qualitative approach where the empirical data has been collected through both unstructured- and semi-structured interviews with a selection of employees in the banking sector. The banks that are included in the study's selection are Nordea, Sparbanken Syd and Swedbank. The selected theoretical material has been the basis for the interview-questions and also for the analysis. The result of the study shows that the main factors behind the location decision in Hyllie are that the place is perceived as a strategic location, offers a good public transport service and provides access to people who are in the area because of Emporia and the arena for instance.

Studien undersöker de faktorer som ligger bakom spelutvecklingsföretagens val vid etablering i de centrala delarna av Malmö. Analys har gjorts på hur spelutvecklingsföretagen resonerar kring deras beslut samt vilka faktorer de grundar sin lokalisering på. Enligt tidigare studier är det vanligt att kontorssektorn lokaliserar sig centralt då företaget kan dra nytta av de agglomerationsfördelar som generellt skapas genom kluster. Vid en nyttomaximerad verksamhet blir betalningsviljan högre på dessa platser. Andra studier har däremot visat att spelutvecklingsföretag har möjligheten att placera sig utanför städerna eftersom de inte har samma karaktärsdrag som den karakteristiska kontorssektorn. Den här studien är avgränsad inom spelutvecklingsindustrin i Malmö, vilket inte inkluderar online gambling. Malmö är en välkänd spelhubb världen över och det sker många internationella rekryteringar. Staden erbjuder bra kommunikationer både regionalt men också internationellt då Köpenhamns flygplats bara ligger 20 minuter från Malmös centralstation. Det empiriska materialet är insamlat via semistrukturerade intervjuer gjorda med representanter från både Massive Entertainment och Avalanche Studios. Studien bygger på en kvalitativ ansats men också textanalys då vi granskat spelutvecklingsföretagens internethemsidor. Grunden för studien har byggts upp med hjälp av teoretiskt material. Resultatet av studien visar att spelföretag beaktar medarbetarnas närhet till arbetsplatsen som en av de viktigaste faktorerna vid placering av deras kontor. Det är viktigt att kontorsplaceringen förenklar gång- och cykelavstånd till och från de stora kommunikationspunkterna. En annan orsak till att både Massive och Avalanche etablerade sig i Malmö var att man ville vara en del i stadens gemenskap. De flesta spelutvecklingsföretagen i Malmö är beroende av varandra därför att de delar samma typ av arbetskraft, kompetens och genom närhet till varandra underlättas stora sammankomster och samarbeten.
The study examines the underlying factors behind game development companies choices when establishing in the central parts of Malmö. The analysis has been based on how game development companies reason about their decision as well as which factors they found their localisation on. According to previous studies it is common that the office sector often choose to localise centrally because the company can benefit from the agglomeration economies that are generally created through clusters. By having a utility maximized business the willingness-to-pay increases in these places. However previous studies have shown that game development companies have the opportunity to locate outside of the cities since they do not have the same characteristics as the common office sector.This study is limited to the game development industry in Malmo, which do not include online gambling. Malmo is a well-known gaming hub worldwide and there is frequent international recruitment. The city offers good communications both regionally and internationally, since Copenhagen Airport is only 20 minutes away from Malmo centralstation.The empirical material is gathered through semi-structured interviews made with representatives from both Massive Entertainment and Avalanche Studios. The study is founded on a qualitative approach but also text analysis by examining game development companies websites. The foundation of the study has been based on theoretical material. The results of the study show that the game development companies take their employees commute into consideration as one of the most important factors for the placement of their office. It is of importance that the office placement simplifies with easy access to and from the workplace by foot and cycling as well as the main commuting routes. Another reason why both Massive and Avalanche established themselves in Malmo was because they wanted to be part of the city's community. Most game development companies in Malmo are dependent on each other because they are sharing the same type of workforce and competence, and through proximity to each other, large gatherings and collaborations are facilitated.