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Alonso Model: Urban Location Model

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Give a detailed analysis of the urban location model (Alonso Model) for residents. How can this be used as a basis for predicting the problems cities will face in the future. Please be very detailed.

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urban economics

Give a detailed analysis of the urban location model (Alonso Model)for residents. How can this be used as a basis for predicting the problems cities will face in the future? Please be very detailed.

The Alonso Model is derived from the bid-rent theory. According to the Alonso model it is assumed that the urban user of land has a preference for central location but he is willing to consider locations that are at a distance from the city center provided the rents are lower than compared to those in the center. What the Alonso model asserts is that the use that can get the maximum economic or commercial return will make the winning bid. The Alonso model attempts tom compare the quantity of land required, the differences in the amount of disposable income used on land, and cost of transport on one hand with the costs of moving all goods and services. In accordance with Alonso's model if the amount of goods and services is held constant, the price of land will decrease with every ...

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Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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