Competition for land *AS*

(Sorry I can't put pics up of the bid rent theory diagram, but it's simple to find)

·      There are numerous theory’s related to locational rent. Though the main assumption is the highest bidder will obtain the land. It is also assumed the highest bidder is the one that can obtain the most profit from the site.

·      Land competition is highest at the CBD, mainly because it’s accessibility and the shortage of space.

·      Businesses such as shops conduct business using a relatively small amount of ground space and due to the high rates of sales and turnover they can bid a high price for land (they use the land intensively). Usually offices are built in high rises above ground level shops.

·      The Peak Land Value Intersection (PLVI): The most valuable site in the CBD.

·      Retailers compete with offices – which rely upon good transport systems and proximity to other commercial buildings