Abstract
In this chapter the description of a new version of the MUSSA model is presented. The supply side of the model leading to new equilibrium problems and a solution algorithm that enhances the model performance has been significantly improved. The model is designed to forecast the expected location of agents, residents and firms, in an urban area. The model stands upon the paradigm of static market equilibrium.
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Notes
- 1.
The model is commercially available as a Windows based software since 2002 and currently distributed by Citilabs Inc. under the name of Cube Land. The software license belongs to the Chilean Government (SECTRA).
- 2.
MUSSA II is specified using the RB&SM model approach of fixed points presented in Martínez and Henríquez (2007), except for the constraints on consumers’ and producers’ behaviour, which has been modified.
- 3.
Note that, theoretically, the consumption vector x is optimal if the willingness to pay function is derived from the indirect utility function conditional on location choice.
- 4.
In the urban land market building properties usually have known common values, for example provided by real estate agents, so we expect that the auctioneer receives several similar bids, nevertheless, inevitably the final value is only defined by the auction. On the issue of auctions with common values see for example the review by McAffe and McMillan (1987).
- 5.
Overlined variables denote exogenous information required by the model.
- 6.
It merely requires that the utility function is linear in at least one good of the consumption bundle.
- 7.
Notation: \( {x_{ \bullet k}} \) denotes the vector of all elements of x whose second component is k.
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Acknowledgements
The authors thank MUSSA team members R Henríquez, R. Hurtubia and F Aguila, the Chilean Government (SECTRA) for allowing the publication of this paper. This paper was partially funded by FONDECYT 1060788 and Millennium Institute of Complex Engineering Systems.
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Martínez, F., Donoso, P. (2010). The MUSSA II Land Use Auction Equilibrium Model. In: Pagliara, F., Preston, J., Simmonds, D. (eds) Residential Location Choice. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-12788-5_5
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