An Illustration: Modeling the partment market A Purpose: How are apartment rents determined? are rents desirable? Simplifying assumptions apartments are close or distant, but otherwise identical distant apartments rents are eXogenous(外生变量) and known many potential renters and landlordsAn Illustration: Modeling the Apartment Market Purpose: How are apartment rents determined? Are rents “desirable”? Simplifying assumptions: – apartments are close or distant, but otherwise identical –distant apartments rents are exogenous (外生变量） and known –many potential renters and landlords