Globally optimal housing supply under the combined bid-rent model

Ka Fai Ng; Hong K. Lo

Globally optimal housing supply under the combined bid-rent model

Department of Civil and Environmental Engineering

Research output: Chapter in Book/Conference Proceeding/Report › Conference Paper published in a book › peer-review

Abstract

This study considers the housing supply management problem under land use and transport equilibrium as proposed in Ng and Lo (2015). Housing profit is maximized by optimally allocating housing supply in different locations, while users' nested location and travel choices as well as the bid-rent process are captured simultaneously. The optimization problem, a mathematical programming with equilibrium constraints problem (MPEC), is reformulated and relaxed as a mixed-integer linear programming problem (MILP) which can be readily solved. Based on the solution method in Wang et al. (2015), a global optimization algorithm is proposed to solve the problem. A numerical example is given to demonstrate the solution quality of the proposed algorithm.

Original language	English
Title of host publication	Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation
Editors	Allan Wing Gun Wong, Simon Ho Fai Wong, Gordon Lai Ming Leung
Publisher	Hong Kong Society for Transportation Studies Limited
Pages	10-17
Number of pages	8
ISBN (Electronic)	9789881581457
Publication status	Published - 1 Jul 2018
Event	21st International Conference of Hong Kong Society for Transportation Studies: Smart Transportation, HKSTS 2016 - Hong Kong, Hong Kong Duration: 10 Dec 2016 → 12 Dec 2016

Publication series

Name	Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation

Conference

Conference	21st International Conference of Hong Kong Society for Transportation Studies: Smart Transportation, HKSTS 2016
Country/Territory	Hong Kong
City	Hong Kong
Period	10/12/16 → 12/12/16

Bibliographical note

Publisher Copyright:
© 2018 Hong Kong Society for Transportation Studies Limited. All rights reserved.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 11 Sustainable Cities and Communities

Keywords

Bid-rent process
Global optimization algorithm
Mixed-integer linear programming
Nested choices

Cite this

Ng, K. F., & Lo, H. K. (2018). Globally optimal housing supply under the combined bid-rent model. In A. W. G. Wong, S. H. F. Wong, & G. L. M. Leung (Eds.), Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation (pp. 10-17). (Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation). Hong Kong Society for Transportation Studies Limited.

Ng, Ka Fai ; Lo, Hong K. / Globally optimal housing supply under the combined bid-rent model. Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation. editor / Allan Wing Gun Wong ; Simon Ho Fai Wong ; Gordon Lai Ming Leung. Hong Kong Society for Transportation Studies Limited, 2018. pp. 10-17 (Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation).

@inproceedings{bc9105aa3fe44be68a112fd2cf496df0,

title = "Globally optimal housing supply under the combined bid-rent model",

abstract = "This study considers the housing supply management problem under land use and transport equilibrium as proposed in Ng and Lo (2015). Housing profit is maximized by optimally allocating housing supply in different locations, while users' nested location and travel choices as well as the bid-rent process are captured simultaneously. The optimization problem, a mathematical programming with equilibrium constraints problem (MPEC), is reformulated and relaxed as a mixed-integer linear programming problem (MILP) which can be readily solved. Based on the solution method in Wang et al. (2015), a global optimization algorithm is proposed to solve the problem. A numerical example is given to demonstrate the solution quality of the proposed algorithm.",

keywords = "Bid-rent process, Global optimization algorithm, Mixed-integer linear programming, Nested choices",

author = "Ng, \{Ka Fai\} and Lo, \{Hong K.\}",

note = "Publisher Copyright: {\textcopyright} 2018 Hong Kong Society for Transportation Studies Limited. All rights reserved.; 21st International Conference of Hong Kong Society for Transportation Studies: Smart Transportation, HKSTS 2016 ; Conference date: 10-12-2016 Through 12-12-2016",

year = "2018",

month = jul,

day = "1",

language = "English",

series = "Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation",

publisher = "Hong Kong Society for Transportation Studies Limited",

pages = "10--17",

editor = "Wong, \{Allan Wing Gun\} and Wong, \{Simon Ho Fai\} and Leung, \{Gordon Lai Ming\}",

booktitle = "Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation",

}

Ng, KF & Lo, HK 2018, Globally optimal housing supply under the combined bid-rent model. in AWG Wong, SHF Wong & GLM Leung (eds), Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation. Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation, Hong Kong Society for Transportation Studies Limited, pp. 10-17, 21st International Conference of Hong Kong Society for Transportation Studies: Smart Transportation, HKSTS 2016, Hong Kong, Hong Kong, 10/12/16.

Globally optimal housing supply under the combined bid-rent model. / Ng, Ka Fai; Lo, Hong K.
Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation. ed. / Allan Wing Gun Wong; Simon Ho Fai Wong; Gordon Lai Ming Leung. Hong Kong Society for Transportation Studies Limited, 2018. p. 10-17 (Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation).

Research output: Chapter in Book/Conference Proceeding/Report › Conference Paper published in a book › peer-review

TY - GEN

T1 - Globally optimal housing supply under the combined bid-rent model

AU - Ng, Ka Fai

AU - Lo, Hong K.

PY - 2018/7/1

Y1 - 2018/7/1

N2 - This study considers the housing supply management problem under land use and transport equilibrium as proposed in Ng and Lo (2015). Housing profit is maximized by optimally allocating housing supply in different locations, while users' nested location and travel choices as well as the bid-rent process are captured simultaneously. The optimization problem, a mathematical programming with equilibrium constraints problem (MPEC), is reformulated and relaxed as a mixed-integer linear programming problem (MILP) which can be readily solved. Based on the solution method in Wang et al. (2015), a global optimization algorithm is proposed to solve the problem. A numerical example is given to demonstrate the solution quality of the proposed algorithm.

AB - This study considers the housing supply management problem under land use and transport equilibrium as proposed in Ng and Lo (2015). Housing profit is maximized by optimally allocating housing supply in different locations, while users' nested location and travel choices as well as the bid-rent process are captured simultaneously. The optimization problem, a mathematical programming with equilibrium constraints problem (MPEC), is reformulated and relaxed as a mixed-integer linear programming problem (MILP) which can be readily solved. Based on the solution method in Wang et al. (2015), a global optimization algorithm is proposed to solve the problem. A numerical example is given to demonstrate the solution quality of the proposed algorithm.

KW - Bid-rent process

KW - Global optimization algorithm

KW - Mixed-integer linear programming

KW - Nested choices

UR - https://www.scopus.com/pages/publications/85050633842

M3 - Conference Paper published in a book

AN - SCOPUS:85050633842

T3 - Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation

SP - 10

EP - 17

BT - Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation

A2 - Wong, Allan Wing Gun

A2 - Wong, Simon Ho Fai

A2 - Leung, Gordon Lai Ming

PB - Hong Kong Society for Transportation Studies Limited

T2 - 21st International Conference of Hong Kong Society for Transportation Studies: Smart Transportation, HKSTS 2016

Y2 - 10 December 2016 through 12 December 2016

ER -

Ng KF, Lo HK. Globally optimal housing supply under the combined bid-rent model. In Wong AWG, Wong SHF, Leung GLM, editors, Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation. Hong Kong Society for Transportation Studies Limited. 2018. p. 10-17. (Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation).

Globally optimal housing supply under the combined bid-rent model

Abstract

Publication series

Conference

Bibliographical note

UN SDGs

Keywords

Other files and links

Fingerprint

Cite this