Fretwell Model

The Fretwell Model is an economic theory that explains how land use and development are influenced by the balance between the cost of land and the benefits of building on it. It suggests that landowners will develop or leave land undeveloped based on whether the returns from building outweigh the costs, including land price and development expenses. The model predicts how land values and urban density change as cities grow, helping to understand patterns of suburban expansion and city planning by analyzing the trade-offs between land scarcity, development costs, and expected benefits.