Precise computation of a competitive equilibrium of the discrete land market model

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5 Citations (Scopus)

Abstract

This paper provides a finite algorithm to compute a competitive equilibrium of the Alonso-type discrete land market model (known as bid-rent equilibrium) without assuming any condition on the spatial configuration such as monocentricity. The existence of the finite algorithm implies that the discrete land market model is sufficiently tractable for computer simulation analysis (sensitivity analysis) even if the spatial configuration is variable. Specifically, we can evaluate numerically the effects of new routes in a transportation network upon equilibrium rents and commuting mode.

Original languageEnglish
Pages (from-to)721-743
Number of pages23
JournalRegional Science and Urban Economics
Volume33
Issue number6
DOIs
Publication statusPublished - 2003 Oct

Keywords

  • Competitive equilibrium
  • Discrete land market model
  • Finite algorithm
  • Numerical simulation
  • Recursive method

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

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