The role of procedural utility in land market dynamics in Greater Cairo: An agent based model application

Abstract

In land use analyses, procedural utility is the sense of well-being achieved by an actor while participating in a land market. Such utility has not been explored as an indicator of market preferences beyond applying exploratory Agent Based Models (ABMs) and hypothetical scenarios. This paper presents an empirical approach to procedural utility and applies it in the context of Greater Cairo (GC) – a context with different formal/informal markets that lead to different market preferences for buyers. We integrate the observed market preferences in GC in an ABM incorporating procedural utility. We explore the contribution of such utility on formal/informal urban segregation and urban expansion in GC. Our findings indicate that market preferences contribute to (1) the formulation of urban enclaves and lower socio-economic diversity and (2) making the urban system in GC more attractive, leading to higher urban growth. These findings validate the relevance of procedural utility in contexts where market regulations are distinct enough to trigger buyer market preferences – specifically formal/informal contexts of the Global South.