Strategic interactions of urban land developers in the housing market

This thesis studies the supply side of the housing market taking into account the strategic interactions that occur between urban land developers. The thesis starts by reviewing the literature on new housing supply, concluding that there are very few studies where strategic interactions are taken into account. Next, we develop a model with two urban land developers, who rst decide the quality of housing and then compete in prices, considering that the marginal production costs depend on the housing quality. First, we analyze the price competition game and characterize the Nash equilibrium of the price game. Finally, we examine the rst stage of the game and determine numerically the subgame perfect Nash equilibrium (SPNE) of the quality-price game. In the price competition game, our results show that the equilibrium price of an urban land developer is an increasing function of its own quality, while it is a non-monotonic function of the rival s quality. The behavior of the equilibrium pro ts reveals that, in general, urban land developers gain by di¤erentiating their quality. However, the urban land developer located at the Central Business District (CBD), may prefer to have the same quality than the rival when transportation costs are high by exploiting its locational advantage. The analysis of the rst stage of the game also reveals that, in general, the rms best response is to di¤erentiate their quality and that, in most cases, there are two subgame perfect Nash equilibria that involve quality di¤erentiation. However, the results depend on transportation costs and the quality valuation parameter. For small quality valuations, in equilibrium, the market is not fully covered and, if the unit transportation costs are high, only the urban land developers located at the CBD operates. For higher quality valuations, all the consumers are served. Furthermore, the equilibrium qualities and pro ts are increasing with quality valuation parameter. RESUMO: Esta tese estuda a oferta no mercado da habitação, tendo em conta as interações es- tratégicas que ocorrem entre os produtores de habitação. A tese revê a literatura sobre a oferta de habitação, concluindo que existem poucos estudos que tenham tido em conta as interações estratégicas. De seguida, desenvolvemos um modelo com dois produtores de habitação, que primeiro decidem a qualidade da habitação e depois competem em preços, considerando que os custos marginais de produção dependem da qualidade. Primeiro analisamos o jogo em preços e caracterizamos o equilíbrio de Nash. Posteriormente, ex- aminamos o primeiro estágio do jogo e determinamos numericamente o equilíbrio perfeito em todos os subjogos (SPNE) do jogo. No jogo de competição em preços, os resultados mostram que, o preço de equilíbrio, é uma função crescente da qualidade da habitação, sendo uma função não monótona da qualidade do rival. O lucro de equilíbrio revela que, geralmente, os produtores de habitação têm ganhos em diferenciar a qualidade. No entanto, o produtor localizado no Centro (CBD), pode preferir oferecer a mesma qualidade que o rival, caso os custos unitários de transporte sejam elevados, através da sua vantagem de localização. A análise do primeiro estágio do jogo, revela que, geralmente, a melhor resposta de um produtor é a de diferenciar a qualidade. Na maior parte dos casos existem dois SPNE que envolvem essa diferenciação. No entanto, os resultados dependem dos custos unitários de transporte e da valorização da qualidade por parte do consumidor. Para uma reduzida valorização da qualidade, em equilíbrio, o mercado não é totalmente coberto e, se o custo unitário de transporte é elevado, apenas o produtor localizado no CBD opera no mercado. Para uma valorização elevada da qualidade, todos os consumidores são servidos. Além disso, as qualidades e os lucros de equilíbrio são crescentes com a valorização da qualidade.

Creative Practices Around the Production of Cork

Cork, as a natural product provided by the bark of the cork oak tree, is an important staple of the Portuguese economy and important to Portuguese culture. It is a sustainable product with a positive ecological footprint, from harvesting to industrial production, with the advantage of creating a local economic model through regional labour activity and distribution. Within the balance between nature-human-economy to create a sustainable system, cork production in Portugal represents a human and social dimension. By focusing on that dimension and by creating an awareness of the cultural and social impact of the activity and by re-appraising the meaning of the material within the culture, the study reframes a consideration of the actual place of labour and production. The human, geophysical, historical, social, economic, ecological and cultural aspects of the place are observed as regards their relation to work or labour in that physical space. A pilot study is being developed in the village of Azaruja in the district of Évora, Portugal. In this small locality, cork is very important in terms of the relationships between the physical subsistence of their residents and the local natural resources, because it structures the place in its cultural, social and economical dimensions. This paper outlines the theoretical foundations, the process and the outcomes of the participatory ecodesign project titled Creative Practices Around the Production of Cork which was initiated by a Portuguese artist/design researcher and developed further through the collaboration with the other two authors, one a Portuguese visual artist/researcher and the other a Turkish fashion designer/theorist. The investigation focuses on questions that expand the notion of place for artists and designers, filtered through the lenses of manual labourers in order to understand their physical, social, cultural and economic relationship with the environment. To create the process of interaction with the place and the people, a creative collaborative dynamic is developed between the authors with their range of artistic sensibilities and the local population. To adopt a holistic notion of sustainability and cultural identity a process of investigation is designated to: (1) analyse, test and interpret - through the dissemination of life stories, visual representation of the place and the creation of cork objects - the importance of culture related to the labour activity of a local natural resource that determines and structures the region; (2) to give public recognition to those involved, taking into account their sense of belonging to the place and in order to show the value of their sustainable labour activities related to local natural resources; (3) to contribute to the knowledge of the place and to its dynamism through an aesthetic approach to labour activities. With reference to fields of knowledge such as anthropology, the social arts and sustainable design, a practice-based research is conducted with collaborative and participatory design methods to create an open model of interaction which involves local people in the realization of the project. Outcomes of this research will be presented in the paper as a survey analysis with theoretical conclusions.