IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v22y1985i6p461-480.html
   My bibliography  Save this article

Urban Land Prices and Housing Distribution: Monopolistic Competition and the Myth of the 'Law' of Differential Rent

Author

Listed:
  • Dimitris Emmanuel

    (Greek Public Corporation for Housing and Urban Planning, 10-12, Dorylaiou Str., Athens 115 21)

Abstract

The currently dominant neoclassical models of urban ground rents and housing distribution as well as recent alternatives along neoricardian or Ricardian-Marxian lines display major weaknesses which derive from the problems inherent in the concept of differential rents and its pure competition presuppositions. The paper argues that an effective alternative can be developed on the basis of Chamberlin's theory of monopolistic competition. The formal structure of such a model simplifies greatly the matter of the determination of land prices and incorporates with ease difficult aspects such as the role of public controls. In addition, it offers a much needed theoretically valid integration of land price theory with operationally powerful Lowry-type models. The most interesting implication, however, of a monopolistic competition model is that the venerated 'law' of differential rents must be thoroughly rejected on both theoretical and practical grounds.

Suggested Citation

  • Dimitris Emmanuel, 1985. "Urban Land Prices and Housing Distribution: Monopolistic Competition and the Myth of the 'Law' of Differential Rent," Urban Studies, Urban Studies Journal Limited, vol. 22(6), pages 461-480, December.
    • Handle: RePEc:sae:urbstu:v:22:y:1985:i:6:p:461-480
    DOI: 10.1080/00420988520080841
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420988520080841
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420988520080841?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John M. Hartwick & Philip G. Hartwick, 1975. "The Activity Analysis Approach To Urban Model Building," Papers in Regional Science, Wiley Blackwell, vol. 35(1), pages 75-85, January.
    2. André Farhi, 1973. "Urban Economic Growth And Conflicts: A Theoretical Approach," Papers in Regional Science, Wiley Blackwell, vol. 31(1), pages 95-121, January.
    3. Scott, Allen J., 1976. "Land use and commodity production," Regional Science and Urban Economics, Elsevier, vol. 6(2), pages 147-160, May.
    4. A. Koutsoyiannis, 1975. "Modern Microeconomics," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-15603-0, March.
    5. Paul F. Wendt, 1957. "Theory of Urban Land Values," Land Economics, University of Wisconsin Press, vol. 33(3), pages 228-240.
    6. Joan Robinson, 1969. "The Economics of Imperfect Competition," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-15320-6, March.
    7. Blomquist, Glenn & Worley, Lawrence, 1981. "Hedonic prices, demands for urban housing amenities, and benefit estimates," Journal of Urban Economics, Elsevier, vol. 9(2), pages 212-221, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louis Alessi, 1974. "Aneconomic analysis of government ownership and reculation," Public Choice, Springer, vol. 19(1), pages 1-42, September.
    2. Pérez, Jorge & Vial, Felipe & Zárate, Román, 2022. "Urban Transit Infrastructure: Spatial Mismatch and Labor Market Power," Research Department working papers 1992, CAF Development Bank Of Latinamerica.
    3. Jae-Woong Jeong & Heon-Hwi Lee & Hun Park, 2022. "A Study on the Effect of Knowledge Services on Organizational Performances Based on the Concept of Balanced Scorecards for the Sustainable Growth of Firms: Evidence from South Korea," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    4. Mark Hayes, 2016. "Trades unions, real wages and full employment," Working Papers PKWP1615, Post Keynesian Economics Society (PKES).
    5. Donald Harris, 1972. "The black ghetto as colony: A theoretical critique and alternative formulation," The Review of Black Political Economy, Springer;National Economic Association, vol. 2(4), pages 3-33, September.
    6. Alireza Fallah & Michael I. Jordan & Ali Makhdoumi & Azarakhsh Malekian, 2024. "The Limits of Price Discrimination Under Privacy Constraints," Papers 2402.08223, arXiv.org, revised Jun 2024.
    7. Einer Elhauge & Barry Nalebuff, 2017. "The Welfare Effects of Metering Ties," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 33(1), pages 68-104.
    8. Dinan, Terry Marie, 1984. "Obtaining the optimal fuel conserving investment mix: a linear programming-hedonic technique approach," ISU General Staff Papers 198401010800009157, Iowa State University, Department of Economics.
    9. Bergstrom, John C., 1998. "Exploring And Expanding The Landscape Values Terrain," Faculty Series 16653, University of Georgia, Department of Agricultural and Applied Economics.
    10. Tamara TODOROVA, 2021. "Some Efficiency Aspects of Monopolistic Competition: Innovation, Variety and Transaction Costs," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 12(2), pages 82-88.
    11. Bergemann, Dirk & Castro, Francisco & Weintraub, Gabriel, 2022. "Third-degree price discrimination versus uniform pricing," Games and Economic Behavior, Elsevier, vol. 131(C), pages 275-291.
    12. Dirk Bergemann & Tibor Heumann & Michael C. Wang, 2024. "A Unified Approach to Second and Third Degree Price Discrimination," Cowles Foundation Discussion Papers 2376, Cowles Foundation for Research in Economics, Yale University.
    13. Marcel Steffen Eckardt, 2022. "Minimum wages in an automating economy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(1), pages 58-91, February.
    14. Holt, Andrew Chase, 2024. "Monopsony power in the United States: Evidence from the great depression," Explorations in Economic History, Elsevier, vol. 92(C).
    15. Messonnier, Mark L. & Luzar, E. Jane, 1990. "A Hedonic Analysis Of Private Hunting Land Attributes Using An Alternative Functional Form," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-7, December.
    16. Carroni, Elias & Ferrari, Luca & Righi, Simone, 2019. "The price of discovering your needs online," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 317-330.
    17. Patrick Mason, 1992. "The divide-and-conquer and employer/ employee models of discrimination: Neoclassical competition as a familial defect," The Review of Black Political Economy, Springer;National Economic Association, vol. 20(4), pages 73-89, June.
    18. Simon Janssen & Simone Tuor Sartore & Uschi Backes-Gellner, 2016. "Discriminatory Social Attitudes and Varying Gender Pay Gaps within Firms," ILR Review, Cornell University, ILR School, vol. 69(1), pages 253-279, January.
    19. Michael R. Ransom & Ronald L. Oaxaca, 2008. "New Market Power Models and Sex Differences in Pay," Working Papers 1110, Princeton University, Department of Economics, Industrial Relations Section..
    20. Ashenfelter, Orley & Farber, Henry S & Ransom, Michael R., 2010. "Modern Models of Monopsony in Labor Markets: A Brief Survey," IZA Discussion Papers 4915, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:22:y:1985:i:6:p:461-480. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.