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Probabilistic Flows of Inhabitants in Urban Areas and Self-organization in Housing Markets

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Econophysics and Data Driven Modelling of Market Dynamics

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Abstract

We propose a simple probabilistic model to explain the spatial structure of the rent distribution of housing market in city of Sapporo. Here we modify the mathematical model proposed by Gauvin et al. [1]. Especially, we consider the competition between two distances, namely, the distance between house and center, and the distance between house and office. Computer simulations are carried out to reveal the self-organized spatial structure appearing in the rent distribution. We also compare the resulting distribution with empirical rent distribution in Sapporo as an example of cities designated by ordinance. We find that the lowest ranking agents (from the viewpoint of the lowest ‘willing to pay’) are swept away from relatively attractive regions and make several their own ‘communities’ at low offering price locations in the city.

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References

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Acknowledgments

One of the authors (JI) thanks Jean-Pierre Nadal in \(\acute{\text{ E }}\)cole Normale Sup\(\acute{\text{ e }}\)rieure for fruitful discussion on this topic and useful comments on our preliminary results at the international conference Econophysics-Kolkata VII. The discussion with Takayuki Mizuno, Takaaki Onishi, and Tsutomu Watanabe was very helpful to prepare this manuscript. This work was financially supported by Grant-in-Aid for Scientific Research (C) of Japan Society for the Promotion of Science(JSPS) No. 22500195, Grant-in-Aid for Scientific Research (B) No. 26282089, and Grant-in-Aid for Scientific Research on Innovative Area No. 2512001313. Finally, we would like to acknowledge the organizers of Econophys-Kolkata VIII for their hospitality during the conference, in particular, Frederic Abergel, Hideaki Aoyama, Anirban Chakraborti, Asim Ghosh and Bikas K. Chakrabarti.

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Correspondence to Jun-ichi Inoue .

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Hishikawa, T., Inoue, Ji. (2015). Probabilistic Flows of Inhabitants in Urban Areas and Self-organization in Housing Markets. In: Abergel, F., Aoyama, H., Chakrabarti, B., Chakraborti, A., Ghosh, A. (eds) Econophysics and Data Driven Modelling of Market Dynamics. New Economic Windows. Springer, Cham. https://doi.org/10.1007/978-3-319-08473-2_7

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