BID RENT THEORY
You need to know the theory of urban land use & a knowledge of
bid rent theory would be good.
The Barcalona Field Studies Centre website provides a useful
summary, along with the usual Bitesize & S Cool websites.
Bid rent theory is a geographical theory that refers to how the
price and demand on land changes as the distance towards the
CBD (Central Business District) increases.
It states that different land users will compete with one and other
for land close to the city centre. This is based upon the idea that
retail establishments wish to maximise their profitability, so they
are much more willing to pay more for land close to the CBD and
less for land further away from this area. This theory is based
upon the reasoning that the more accessible an area, the more
profitable it is going to be.
The different land users all compete with one and other for the
more accessible land. The amount that they are willing to pay is
called Bid Rent. As a direct result of this, a pattern of concentric
