The Optimum Height Cost of Hotel Building in a Tourist City

Abstract

We first specify an exponential tourist utility function in form and derive a function to estimate the level of tourism landscape for the tourist from constrained utility maximization. Then, the derived function is applied to cost-effectiveness analysis of the public construction industry. Finally, the optimum construction cost function is simulated. Consequently, we find that the planner must increase optimum height cost up to around the fourth floor when elasticity of cost with respect to level of height ε is smaller, but from that level, can decrease cost gradually and increase sharply the cost when ε is larger.