February 02, 2009, 11:15, Room GC B3 424 (click here for the map)
The seminar will cover how the urban economic bid-auction theory and the random utility theory are combined to generate the stochastic bid-auction theory that sustains MUSSA (currently CUBE LAND model). The explanations will cover the agents (consumers and suppliers) rational behavior, the auction market equilibrium, how location externalities (e.g. agglomeration economies) and suppliers face economies of scale are modeled, how regulations affect the market, and how the model predicts emerging patterns (agglomeration and segregation, densities), the formation and distribution of rent across space and utility levels attained by consumers.
Francisco Martinez is Associate Professor at the University of Chile, Senior researcher in the Millennium Institute of Complex Systems in Engineering, and Advisor to the Rector, University of Chile. He holds the following degrees: PhD with Thesis in the field of Urban Economics (1991), University of Leeds, UK; Master of Arts in Transport Economics (1988), University of Leeds, UK; and Civil Engineer, Universidad de Chile (1984). His research focuses on urban systems (Urban and Transport Modeling, Land use, land prices, location externalities, evaluation, regulations and tax/subsidies, transport and land use interaction), Spatial Choice modeling (constrained behavior, bid-auctions, calibration methods), location models (location demand, optimization and equilibrium location of services (schools and other services)) and Sustainable Urban Systems (member of the Risk Habitat Megacities Project, in partnership with the Helmhold Society, Germany).
[Download the slides here]