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Your Place in Space: Classroom Experiment on Spatial Location Theory

Author

Listed:
  • Margo Bergman
  • G. Dirk Mateer
  • Michael Reksulak
  • Jonathan C. Rork
  • Rick K. Wilson
  • David Zirkle

Abstract

The authors detail an urban economics experiment that is easily run in the classroom. The experiment has a flexible design that allows the instructor to explore how congestion, zoning, public transportation, and taxation levels determine the bid--rent function. Heterogeneous agents in the experiment compete for land use using a simple auction mechanism. Using the data that is collected, a bid--rent function is derived, and the experimental treatment is altered over the course of three sessions to uncover core concepts in urban economics. Moreover, this provides a tangible experience that can be used to help undergraduates relate to urban issues such as the steep rent gradient found around many larger colleges and universities.

Suggested Citation

  • Margo Bergman & G. Dirk Mateer & Michael Reksulak & Jonathan C. Rork & Rick K. Wilson & David Zirkle, 2009. "Your Place in Space: Classroom Experiment on Spatial Location Theory," The Journal of Economic Education, Taylor & Francis Journals, vol. 40(4), pages 405-421, October.
    • Handle: RePEc:taf:jeduce:v:40:y:2009:i:4:p:405-421
    DOI: 10.1080/00220480903237976
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    Cited by:

    1. Michiel Bliemer & Laurent Denant-Boemont & Sabrina Hammiche & David Hensher & Corinne Mulley, 2020. "Urban Costs and the Spatial Structure of Cities: A Laboratory Experiment," Working Papers halshs-02440516, HAL.

    More about this item

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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