The document describes the Von Thunen model and bid-rent model of urban land use. The Von Thunen model shows how land rent decreases with distance from the market center due to increased transportation costs. The bid-rent model depicts bid-rent curves for different land uses and how they compete for space in a central business district. It further demonstrates how the models can incorporate multiple activity centers, telecommuting, and transit-oriented development.

1. Von Thunen Model land rent/cost per acre $200 Market price $150 $100 $50 distance 0

2. Von Thunen Model land rent/cost per acre $200 Market price $150 Fixed cost of non-land inputs $100 $50 distance 0

3. Von Thunen Model land rent/cost per acre $200 Market price $150 Fixed cost of non-land inputs $100 Transportation cost $50 distance 0 100 miles

4. Von Thunen Model land rent/cost per acre $200 Market price $150 Fixed cost of non-land inputs $100 Transportation cost $50 Max land rent distance 0 100 miles

5. Von Thunen Model land rent/cost per acre $200 Market price $150 Fixed cost of non-land inputs $100 Transportation cost $50 “rent gradient” Max land rent distance 0 100 miles

6. Von Thunen Model land rent/cost per acre Market price $200 $150 Fixed cost of non-land inputs $100 Transportation cost $50 Max land rent distance 0 100 miles

7. Von Thunen Model land rent/cost per acre Market price $200 Fixed cost of non-land inputs $150 Transportation cost $100 $50 Max land rent distance 0 100 miles 150 miles

8. Von Thunen Model land rent/cost per acre $200 Market price $150 Fixed cost of non-land inputs $100 Transportation cost $50 Max land rent distance 0 100 miles

9. Von Thunen Model land rent/cost per acre $200 Market price $150 Fixed cost of non-land inputs $100 Transportation cost $50 Max land rent distance 0 100 miles 200 miles

10. Von Thunen Model land rent/cost per acre $200 Market price $150 Fixed cost of non-land inputs $100 Transportation cost $50 Max land rent distance 0 100 miles 200 miles

11. Von Thunen Model land rent/cost per acre $200 $150 $100 rent gradient $50 Max land rent distance 0 100 miles 200 miles

12. Von Thunen Model land rent/cost per acre $200 $150 $100 rent gradient, services $50 Max land rent for services 0 100 miles 200 miles

13. Von Thunen Model land rent/cost per acre $200 $150 $100 rent gradient, services $50 rent gradient, manufacturing 0 100 miles 200 miles

14. Bid-Rent Model land rent/cost per acre $200 $150 $100 bid-rent curve for a single firm $50 0 100 miles 200 miles The slope of the bid-rent curve equals the transportation cost per mile per acre.

15. Bid-Rent Model land rent/cost per acre $200 bid-rent curve for service sector $150 $100 bid-rent curve for manufacturing sector $50 0 100 miles 200 miles

16. Bid-Rent Model land rent/cost per acre $200 bid-rent curve for service sector $150 $100 bid-rent curve for manufacturing sector $50 bid-rent curve for wholesale sector 0 100 miles 200 miles

17. Bid-Rent Model land rent/cost per acre $200 bid-rent curve for service sector $150 $100 bid-rent curve for manufacturing sector $50 urban land allocation by sector bid-rent curve for wholesale sector 0 100 miles 200 miles

18. Bid-Rent Model: with zoning Rent CBD Distance O A R R O O = Office A = Ancillary R = Residential

19. Bid-Rent Model: with zoning Rent CBD Distance O A R R O O = Office A = Ancillary R = Residential

20. Bid-Rent Model: multiple centers Rent CBD Edge City Distance O A R R O O = Office A = Ancillary R = Residential

21. Bid-Rent Model: multiple centers Rent CBD Edge City Distance O A R R O O O = Office A = Ancillary R = Residential

22. Bid-Rent Model: multiple centers, telecommuting, transit-oriented development (TOD) Rent CBD Edge City 1 Edge City 2 Distance