On the New Town’s Rise and Fall and Location Choice Based on Alonso Model: A Case Study of Pukou University Town of Nanjing

Abstract

In the process of rapid urbanization, in order to adapt to the continuous development of the city, improve the city’s industrial structure and optimize the layout of urban space, many cities start the planning and construction of a new town. However, not all the new towns can develop well. Why? Based on the comprehensive literature review at home and abroad, this paper takes Pukou University Town of Nanjing as an example and uses the Alonso model to deduct the decision maker’s bidding curve, and tries to illustrate the reasons of the development advantages and disadvantages of new town from the perspective of new town’s location choice, thus it concludes: (a) in the same utility, the price that resident is willing to offer decreases with the increase of commuting distance (or time); (b) the increase of commuting distance (or time) will result in the decrease of land price (house price), and when the saved expenses can’t cover the increased commuting costs, the location’s prospect is worrying.