Abstract
In this paper a stochastic model is proposed for describing the property of land-use transition. Although the application of a random bid-price theory to land-use model is by now fairly familiar, this paper develops a new method to estimate a bid-price utility function using the land-use transition matrix. One advantage of this method is that the parameters can be estimated using a multiple regression analysis with ease. It is, also, possible to obtain not only the bid-price utility of each land-use at each place, but also the effects of a change of the land-value or investment costs on the transition probability. The numerical examples using the actual land-use data are shown to inspect the effectiveness of the proposed model.
