Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />$100<br />$50<br />distance<br />...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />Market price<br />$200<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />Market price<br />$200<br />Fixed cost of non-land inputs<br />$150<br ...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br ...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />rent gradient<br />$50<br />Max land rent...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />rent gradient, services<br />$50<br />Max...
Von Thunen Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />rent gradient, services<br />$50<br />ren...
Bid-Rent Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />bid-rent curve for a single firm<br />$50<b...
Bid-Rent Model<br />land rent/cost per acre<br />$200<br />bid-rent curve for service sector<br />$150<br />$100<br />bid-...
Bid-Rent Model<br />land rent/cost per acre<br />$200<br />bid-rent curve for service sector<br />$150<br />$100<br />bid-...
Bid-Rent Model<br />land rent/cost per acre<br />$200<br />bid-rent curve for service sector<br />$150<br />$100<br />bid-...
Bid-Rent Model:  with zoning<br />Rent<br />CBD<br />Distance<br />O<br />A<br />R<br />R<br />O<br />O = Office<br />A = ...
Bid-Rent Model:  with zoning<br />Rent<br />CBD<br />Distance<br />O<br />A<br />R<br />R<br />O<br />O = Office<br />A = ...
Bid-Rent Model:  multiple centers<br />Rent<br />CBD<br />Edge City<br />Distance<br />O<br />A<br />R<br />R<br />O<br />...
Bid-Rent Model:  multiple centers<br />Rent<br />CBD<br />Edge City<br />Distance<br />O<br />A<br />R<br />R<br />O<br />...
Bid-Rent Model:  multiple centers, telecommuting, transit-oriented development (TOD)<br />Rent<br />CBD<br />Edge City 1<b...
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Bid rent model with audio(1)

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from The Global City, Northwestern University, Summer 2011, graduate public policy course

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Bid rent model with audio(1)

  1. 1. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />$100<br />$50<br />distance<br />0<br />
  2. 2. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br />$100<br />$50<br />distance<br />0<br />
  3. 3. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br />$100<br />Transportation cost<br />$50<br />distance<br />0<br />100 miles<br />
  4. 4. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br />$100<br />Transportation cost<br />$50<br />Max land rent<br />distance<br />0<br />100 miles<br />
  5. 5. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br />$100<br />Transportation cost<br />$50<br />“rent gradient”<br />Max land rent<br />distance<br />0<br />100 miles<br />
  6. 6. Von Thunen Model<br />land rent/cost per acre<br />Market price<br />$200<br />$150<br />Fixed cost of non-land inputs<br />$100<br />Transportation cost<br />$50<br />Max land rent<br />distance<br />0<br />100 miles<br />
  7. 7. Von Thunen Model<br />land rent/cost per acre<br />Market price<br />$200<br />Fixed cost of non-land inputs<br />$150<br />Transportation cost<br />$100<br />$50<br />Max land rent<br />distance<br />0<br />100 miles<br />150 miles<br />
  8. 8. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br />$100<br />Transportation cost<br />$50<br />Max land rent<br />distance<br />0<br />100 miles<br />
  9. 9. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br />$100<br />Transportation cost<br />$50<br />Max land rent<br />distance<br />0<br />100 miles<br />200 miles<br />
  10. 10. Von Thunen Model<br />land rent/cost per acre<br />$200<br />Market price<br />$150<br />Fixed cost of non-land inputs<br />$100<br />Transportation cost<br />$50<br />Max land rent<br />distance<br />0<br />100 miles<br />200 miles<br />
  11. 11. Von Thunen Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />rent gradient<br />$50<br />Max land rent<br />distance<br />0<br />100 miles<br />200 miles<br />
  12. 12. Von Thunen Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />rent gradient, services<br />$50<br />Max land rent for services<br />0<br />100 miles<br />200 miles<br />
  13. 13. Von Thunen Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />rent gradient, services<br />$50<br />rent gradient, manufacturing<br />0<br />100 miles<br />200 miles<br />
  14. 14. Bid-Rent Model<br />land rent/cost per acre<br />$200<br />$150<br />$100<br />bid-rent curve for a single firm<br />$50<br />0<br />100 miles<br />200 miles<br />The slope of the bid-rent curve equals the transportation cost per mile per acre. <br />
  15. 15. Bid-Rent Model<br />land rent/cost per acre<br />$200<br />bid-rent curve for service sector<br />$150<br />$100<br />bid-rent curve for manufacturing sector<br />$50<br />0<br />100 miles<br />200 miles<br />
  16. 16. Bid-Rent Model<br />land rent/cost per acre<br />$200<br />bid-rent curve for service sector<br />$150<br />$100<br />bid-rent curve for manufacturing sector<br />$50<br />bid-rent curve for wholesale sector<br />0<br />100 miles<br />200 miles<br />
  17. 17. Bid-Rent Model<br />land rent/cost per acre<br />$200<br />bid-rent curve for service sector<br />$150<br />$100<br />bid-rent curve for manufacturing sector<br />$50<br />urban land allocation by sector<br />bid-rent curve for wholesale sector<br />0<br />100 miles<br />200 miles<br />
  18. 18. Bid-Rent Model: with zoning<br />Rent<br />CBD<br />Distance<br />O<br />A<br />R<br />R<br />O<br />O = Office<br />A = Ancillary<br />R = Residential<br />
  19. 19. Bid-Rent Model: with zoning<br />Rent<br />CBD<br />Distance<br />O<br />A<br />R<br />R<br />O<br />O = Office<br />A = Ancillary<br />R = Residential<br />
  20. 20. Bid-Rent Model: multiple centers<br />Rent<br />CBD<br />Edge City<br />Distance<br />O<br />A<br />R<br />R<br />O<br />O = Office<br />A = Ancillary<br />R = Residential<br />
  21. 21. Bid-Rent Model: multiple centers<br />Rent<br />CBD<br />Edge City<br />Distance<br />O<br />A<br />R<br />R<br />O<br />O<br />O = Office<br />A = Ancillary<br />R = Residential<br />
  22. 22. Bid-Rent Model: multiple centers, telecommuting, transit-oriented development (TOD)<br />Rent<br />CBD<br />Edge City 1<br />Edge City 2<br />Distance<br />
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