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Open-Space Amenities, Interacting Agents, and Equilibrium Landscape Structure

This paper presents a model in which open space is assumed to provide external benefits to residents of adjacent municipalities, and utility-maximizing municipal planners are assumed to act strategically in recognizing the benefits of neighboring open space and planning their own open-space allocation accordingly. Using a simple behavioral model to represent each planner’s open-space allocation decision, the model illustrates that the strategic interaction of multiple decision-makers can produce relatively complex patterns of open space on a landscape. The extent to which these patterns are sensitive to heterogeneities among municipalities in income potential, land area, and open space availability is also explored. (JEL Q24, R14)