<Table> <Tr> <Td> </Td> <Td> This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations . Please help to improve this article by introducing more precise citations . (August 2009) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations . Please help to improve this article by introducing more precise citations . (August 2009) (Learn how and when to remove this template message) </Td> </Tr> <P> The bid rent theory is a geographical economic theory that refers to how the price and demand for real estate change as the distance from the central business district (CBD) increases . It states that different land users will compete with one another for land close to the city centre . This is based upon the idea that retail establishments wish to maximize their profitability, so they are much more willing to pay more for land close to the CBD and less for land further away from this area . This theory is based upon the reasoning that the more accessible an area (i.e., the greater the concentration of customers), the more profitable . </P> <P> Land users all compete for the most accessible land within the CBD . The amount they are willing to pay is called "bid rent". The result is a pattern of concentric rings of land use, creating the concentric zone model . </P>

The bid-rent curve in 19th century usa cities generally