Land-use change in a market economy, particularly at the urban-rural fringe in North America, is shaped through land and housing markets. Although market activities are at the core of economic studies of land-use change, many market elements are neglected by coupled human-environment models. We scrutinized the effects of the level of detail of market representation using an abstract, agent-based model of land-use change. This model includes agents representing land buyers and sellers and their respective market-based decision-making behaviors. Our results show that although incorporating key market elements, particularly budget constraints and competitive bidding, in land-use models generally alters projected land-use patterns, their impacts differ significantly depending on the level of detail of market representation. Consistent with theories of land change, our research confirms that budget constraints can considerably reduce the projected quantity of land-use change. The effects of competitive bidding, however, are more complex and depend on buyers' budgets, their relative preferences for proximity versus open-space amenities, and the size of neighborhoods. Market competition might reduce or increase the quantity of land-use change and the degree of sprawl in the simulated landscapes. Because of the strong effects of market elements on resulting patterns, adequate representation of the structure of markets is important for capturing and characterizing the complexity inherent in coupled human-environment systems.@en

Urban land-use modeling methods have experienced substantial improvements in the last several decades. With the advancement of urban land-use change theories and modeling techniques, a considerable number of models have been developed. The relatively young approach, agent-based modeling, provides urban land-use models with some new features and can help address the challenges faced by traditional models. Applications of agent-based models to study urban dynamics have increased steadily over the last twenty years. To offer a retrospective on the developments in agent-based models (ABMs) of urban residential choices, we review fifty-one relevant models that fall into three general categories: (i) urban land-use models based on classical theories; (ii) different stages of the urbanization process; and (iii) integrated agent-based and microsimulation models. We summarize and compare the main features of these fifty-one models within each category. This review focuses on three fundamental new features introduced byABMs. The first is agent heterogeneity with particular attention to the method of introducing heterogeneity in agents' attributes and behaviors. The second is the representation of land-market processes, namely preferences, resources constraints, competitive bidding, and endogenous relocation. The third is the method of measuring the extensive model outputs. In addition, we outline accompanying challenges to, and open questions for, incorporating these new features. We conclude that, by modeling agent heterogeneity and land markets, and by exploiting a much broader dimension of output, we will enhance our understanding of urban land-use change and are hopefully able to improve model fitness and robustness.@en

Representing agent heterogeneity is one of the main reasons that agent-based models become increasingly popular in simulating the emergence of land-use, land-cover change and socioeconomic phenomena. However, the relationship between heterogeneous economic agents and the resultant landscape patterns and socioeconomic dynamics has not been systematically explored. In this paper, we present a stylized agent-based land market model, Land Use in eXurban Environments (LUXE), to study the effects of multidimensional agents' heterogeneity on the spatial and socioeconomic patterns of urban land use change under various market representations. We examined two sources of agent heterogeneity: budget heterogeneity, which imposes constraints on the affordability of land, and preference heterogeneity, which determines location choice. The effects of the two dimensions of agents' heterogeneity are systematically explored across different market representations by three experiments. Agents' heterogeneity exhibits a complex interplay with various forms of market institutions as indicated by macro-measures (landscape metrics, segregation index, and socioeconomic metrics). In general, budget heterogeneity has pronounced effect on socioeconomic results, while preference heterogeneity is highly pertinent to spatial outcomes. The relationship between agent heterogeneity and macro-measures becomes more complex when more land market mechanisms are represented. In other words, appropriately simulating agent heterogeneity plays an important role in guaranteeing the fidelity of replicating empirical land use change process.@en