A Game-theoretic Approach to Multi-agent Infrastructure Development for Urban Renewal

Abstract

Urban land use is often reorganized in accordance with the changes of social and economic activities. The reorganization should be coupled with infrastructure renewal. A public body and developers (private entities) need to cooperate in the infrastructure development of the urban renewal project. Then it becomes an important problem how to allocate lands and costs in the cooperation. This problem can be modeled as a cooperative game. Various situations are taken into consideration and some scenarios of the planned land uses, land prices, etc. are analyzed by changing the parameter values. The analyses lead to valuable policy implications.