Using the von thunen model the author analyzes the mechanism for the rise in urban commercial house price and draw the following conclusions : when the urban commercial house price difference between central area and peripheral area is equal to or more than the cost to reside in peripheral area , rational buyers tend to buy commercial houses in peripheral area ; with the reduction of the cost to reside in peripheral area , the urban commercial house price level in central area tends to be close to that in peripheral area ; given that the cost to reside in peripheral area is fixed , the urban commercial house price level in peripheral area is restricted by the price level in central area
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