Urban Land Development and its Prices: The Effects of Conversion Costs with Redevelopment
研究了当土地所有者预期未来有第三方开发商进行大规模再开发时，其初始开发活动如何通过拆迁成本和保留价格影响再开发，并分析了这些成本对土地价格和开发水平的影响，为分区和城市规划提供了理论依据。
This paper analyzes urban land development when landowners anticipate a future large‐scale redevelopment by a third party developer. Landowners' initial development activities can deter such redevelopment because they impose two conversion costs on the redeveloper: demolition costs and landowners' reservation prices. These costs are eventually borne by the landowners when the developers' market is competitive. For the landowners' initial development activities, we analyze both the efficient solution and the noncooperative solution under the Nash equilibrium. In both cases, the possibility of redevelopment results in a lower level of initial development due to the conversion costs, but increases land prices. However, the magnitude of their effects is smaller in the Nash solution due to an externality. The presence of such an externality provides a rationale for zoning and urban planning.