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

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 computational laboratory that may improve our understanding of the processes generating patterns observed in real-world data

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