F105 Economics Rent Gradients

Alonso and Von Thunen theories are both value theories based on the bid rent-rent curve(gradient)

These are models based on a perfect market, in reality an explanation is required for why they deviate from the models presented on urban land use distortions to look for are

• topography- High ground, rivers, lakes 
• Infrastructure road and rail netwoks
• Govt. Influence
• Other market imperfections

Urban Version takes the Von Thunen model and extends it into the urban context

savings of costs getting goods to markets = the genenral accessabilty of each possible location.

productivity of land determines rent

rents diminish with productivity as distance from the optimum location

based on the principle that rents diminish because of lower revenue and higher operating costs(transport)

produces a rent gradient (Alonso's bid-rent - distance relationship pg 193 urban economics.

Different land uses have different gradients with the highest rent prevailing

the conclusion to this is that competative bidding by well informed developers and users of land determine the pattern of rent throughout the urban area allocating sites between uses ensuring best and highest rent- maximisation of profit.

a change of use gradient can be expected when one gradient falls below another- through the…