Bid-Rent Analysis
Bid-rent analysis is the urban-economics theory that explains how land rent and land use are organized by distance to the city centre. Developed by William Alonso in 1964, it represents each land use — commerce, industry, housing — by a bid-rent curve giving the maximum rent that use is willing to pay at each distance from the central business district. Because uses with steeper curves outbid others for central land, the observed rent is the upper envelope of all the curves, and the city sorts into concentric zones with the highest bidder winning each ring.
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- Alonso, W. (1964). Location and Land Use: Toward a General Theory of Land Rent. Harvard University Press, Cambridge, MA. · ISBN 9780674537019
- von Thünen, J. H. (1966). Von Thünen's Isolated State (P. Hall, Ed.). Pergamon Press, Oxford. (Original work 1826). · URL
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