A quasi-equilibrium approach for market clearing in land use microsimulations
The article “A quasi-equilibrium approach for market clearing in land use microsimulation” discusses how agents in differing areas utilize Bid-Auction theory and random utility models in the housing market in order to arrive at a market clearing price. These agents utilize their understanding of supply and demand in order to determine prices which cause the consumer to discriminate between the prices and the agent in order to arrive at the best solution for both individuals. This ecosystem is thoroughly derived for a location bid modeling approach by this graphic below.
This goal within this environment is for each agent to maximize their utility in such a way that they are able to sell the most possible units at the highest possible bid. For an agent to utilize this utility he must understand how consumers will be bidding in relation to all possible factors. The article utilizes the equation: 
to describe a consumers bid function such that bh^t represents a consumers bid adjustment relative to their utility level of the household, bhi represents a consumers hedonic interpretation of the household (h) given its location (i) regarding a set of parameters (ß).
Case Study For How Agents Should Adjust
The article describes the usage of this algorithm to determine a consumers willingness to bid in certain different areas and households around Brussels, Belgium circa 2015. In studying a group of households and taking into consideration their socioeconomic attributes and location the study disclosed that there existed a socioeconomic agglomeration effect. This study revealed that all else held constant there were positive values of 𝛽high−incβhigh-inc and negative value of 𝛽low−inc which indicates that middle and high income individuals increase their willingness to pay when bidding for houses in high income areas while high income individuals lower their willingness to pay for houses in low income zones. One of many possible reasons behind this finding is that households in high income areas offer closeness to significantly better education, shopping and other services in addition to offering possible connections made with other high net worth individuals. Therefore we can conclude that when dealing with high income individuals agents should greatly increase their willingness to accept a bid in high income areas and in doing so would maximize their utility.
Reference:https://journals.sagepub.com/doi/full/10.1177/2399808317719071