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Microsimulation of Businesses in ILUMASS
Part 3: Treatment of Location & Interaction between Firms
Rolf Moeckel and Michael Wegener
Workshop of the Land Use Transportation Modelling Group University College London, 2 July 2005
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Moves Theory on Business Location
von Thünen (1875): The isolated State
Weber (1909): Location of Industries
Hotelling (1929): Stability in Competition
Christaller (1933): Central Places
Alonso (1965): Location and Land Use
Porter (1998): Clusters
Rothengatter, Kowalski (2000): Soft Factors
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Moves of Businesses
Businesses that are unsatisfied with their lo-cation might decide to move.
The satisfaction of a business with its cur-rent location is checked. If the business is very unsatisfied it looks for alternative sites.
If a business can improve its satisfaction significantly it might decide to move.
If a business is unsatisfied because the cur-rent site is too small it first checks if there is any adjacent vacancy.
Moves
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Check satisfact. with location
Select an alternative location
Select a business
Accept new location?
Evaluate alternative location
no (1-10)
yesno (11)
Another business?
yes
End
no
StartMethod
Business is unsatisfied?
no
yes
Moves
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Location Satisfaction of a Business
There are replaceable and non-replace-able location factors:
Replaceable- soft location factors - image of a site- environmental quality- expansion capability- agglomeration effects
Non-replaceable- accessibility to customers and employees- size and quality of floorspace- rent- business tax
Moves
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Location Satisfaction of a Business
Replaceable location factors:
Non-replaceable location factors:
Total Utility
...321 lllur
...321 lllunr
nrrt uuu
Moves
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Select a town
Select a zone
Select a micro location
Geographic-Hierarchical Site Finding
Moves
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Example: Finding an Industrial Site
Moves
3.000
12.200
10.000 10.000 4.500
8.500
0 0
8.000
15.000
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Job Density per Raster Cell
Moves
0.5
5000.0
Employeesper hectare
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Change of Non-Residential Floorspace
Depending on the demand of floorspace de-velopers decide to build new buildings.
The time lack between increased demand and floorspace building is represented.
Prices are adjusted according to demand, particularly if demand is higher than supply.
While smaller sites are built by developers larger sites are built by the later user.
Moves
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