JOURNEY AND TRANSACTIONS FREQUENCY - AN ALTERNATIVE EXPLANATION OF RENT-GRADIENT CONVEXITY

This paper contends that in many real-world situations, the frequency with which transactions take place is central to the relationship betw een land prices and location. It will therefore be argued that an appr oach which makes the transactions and journey frequency endogenous to the cost problem is the correct way in which time should be incorporat ed into many urban rent-distance models, Under these conditions, it ca n be shown that a convex distance-rent gradient can be generated witho ut the need for the assumption of a convex indifference curve or isoqu ant, Furthermore, in many such cases, the convex distance-rent curve c an be shown to exist irrespective of whether transport costs are conca ve, linear or greater than linear with distance, Real examples will be used to illustrate the problem.