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

In land use analyses, procedural utility is the sense of well-being achieved by an actor while 5 participating in a land market. Such utility has not been explored as an indicator of market 6 preferences beyond applying exploratory Agent Based Models (ABMs) and hypothetical 7 scenarios. This paper presents an empirical approach to procedural utility and applies it in 8 the context of Greater Cairo (GC) – a context with different formal/informal markets that 9 lead to different market preferences for buyers. We integrate the observed market preferences 10 in GC in an ABM incorporating procedural utility. We explore the contribution of such utility 11 on formal/informal urban segregation and urban expansion in GC. Our findings indicate 12 that market preferences contribute to (1) the formulation of urban enclaves and lower socio-13 economic diversity; and (2) making the urban system in GC more attractive, leading to higher 14 urban growth. These findings validate the relevance of procedural utility in contexts where 15 market regulations are distinct enough to trigger buyer market preferences – specifically 16 formal/informal contexts of the Global South.