A quasi-equilibrium approach for market clearing in land use microsimulations
Bibliographic Data
| ID | 21246907 |
|---|---|
| Authors | Ricardo Hurtubia (0000-0002-3553-610X, Pontificia Universidad Católica de Chile, corresponding author), Francisco Martinez (0000-0003-2113-9987, University of Chile), Francisco Javier Martínez (0000-0003-4675-0088, University of Chile), Michel Bierlaire (0000-0002-5275-7692, Ecole polytechnique fédérale de Lausanne) |
| Year | 2019 |
| Volume | 46 |
| Issue | 3 |
| Pages | 445-468 |
| Publication date | 2019-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Environment and Planning B Urban Analytics and City Science (JOURNAL) |
| Journal identifiers | ISSN: 2399-8083 • E-ISSN: 2399-8091 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/2399808317719071 |
| OpenAlex | W2735010353 |
| Language | EN |
| Citations received | 2 |
| References cited | 43 |
A method for market clearing in land use models with a microsimulation approach for location choice of agents is proposed. The method, based on the Bid-auction theory and random utility models, assumes that agents individually adjust their perceived expected utility by observing market prices before entering auctions for a real estate good, hence modifying their overall willingness to pay for locations. The adjustment translates into a correction of each agent’s bid level that follows the direction of supply-demand equilibrium, as they attempt to ensure their location. In each period, auctions for each available real estate good are simulated and prices are computed as the expected maximum bid of all agents in the market. The proposed method is tested for the city of Brussels, validated against real data and compared with results obtained when the bid adjustment is not included. Simulation results reproduce price trends that were observed in reality between the year 2001 and 2008, outperforming results obtained without a quasi-equilibrium bid adjustment approach. The proposed method is feasible to be implemented in large scale microsimulations and agent-based models because it does not require solving large fixed-point equilibrium problems
Clearing · Common value auction · Econometrics · Economics · Market clearing · Microeconomics · Microsimulation · Real estate · Computer Science · demographic modeling and climate adaptation · Economic and Environmental Valuation · Housing Market and Economics · Mathematics · Finance
Agent-Based Models of Geographical Systems
Location and Land Use
The ODD protocol
Agent-based land-use models
A standard protocol for describing individual-based and agent-based models
UrbanSim
Urban Economic Theory
An alternative test of the hedonic theory of housing markets
Market Impacts on Land-Use Change
The Bid-Choice Land-Use Model
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2022 - 2023 (2) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |