The emergence of racial segregation in an agent-based model of residential location: The role of competing preferences

Abstract

Models of segregation dynamics have examined how individual preferences over neighborhood racial composition determine macroscopic patterns of segregation. Many fewer models have considered the role of household preferences over other location attributes, which may compete with preferences over racial composition. We hypothesize that household preferences over location characteristics other than racial composition affect segregation dynamics in nonlinear ways and that, for a critical range of parameter values, these competing preferences can qualitatively affect segregation outcomes. To test this hypothesis, we develop a dynamic agent-based model that examines macro-level patterns of segregation as the result of interdependent household location choices. The model incorporates household preferences over multiple neighborhood features, some of which are endogenous to residential location patterns, and allows for income heterogeneity across races and among households of the same race. Preliminary findings indicate that patterns of segregation can emerge even when individuals are wholly indifferent to neighborhood racial composition, due to competing preferences over neighborhood density. Further, the model shows a strong tendency to concentrate affluent families in a small number of suburbs, potentially mimicking recent empirical findings on favored quarters in metropolitan areas. © 2006 Springer Science + Business Media, Inc.