Abstract
Prior weighted entropy functions compensating for the arbitrary partitioning by the zoning system of the origin and destination quantities in entropy maximising models of spatial interaction are presented and justified. This type of prior weighting is essential if the dual variables derived from the entropy maximising derivation of these models are to be used and interpreted as spatial prices in empirical studies. Failure to use prior weighted entropy functions taking account of varying zone sizes results in the biasing of dual variable values. Empirical illustrations of zone size biasing of house price and consumer welfare dual variable values are presented using a Herbert-Stevens model of a spatial housing market.
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Senior, M.L., Williams, H.C.W.L. The Varying Zone Size Effect and Dual Variables for Entropy Maximising Models of Spatial Interaction. Appl. Spatial Analysis 11, 657–667 (2018). https://doi.org/10.1007/s12061-018-9277-3
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DOI: https://doi.org/10.1007/s12061-018-9277-3