Next Article in Journal
Entropy Based Data Expansion Method for Blind Image Quality Assessment
Next Article in Special Issue
Macroprudential Policy in a Heterogeneous Environment—An Application of Agent-Based Approach in Systemic Risk Modelling
Previous Article in Journal
Bayesian Uncertainty Quantification with Multi-Fidelity Data and Gaussian Processes for Impedance Cardiography of Aortic Dissection
Previous Article in Special Issue
Unexpected Information Demand and Volatility Clustering of Chinese Stock Returns: Evidence from Baidu Index
Concept Paper

What Motivates Speculators to Speculate?

Ethiopian Institute of Architecture, Building Construction and City Development, Addis Ababa University, 120 Addis Ababa, Ethiopia
Faculty of Economics, University of Gdansk, 81-824 Sopot, Poland
School of Economics and Management, Beijing Forestry University, No. 35, Qinghua East Road, Haidian District, Beijing 100083, China
Author to whom correspondence should be addressed.
Entropy 2020, 22(1), 59;
Received: 21 November 2019 / Revised: 21 December 2019 / Accepted: 28 December 2019 / Published: 31 December 2019
(This article belongs to the Special Issue Complexity in Economic and Social Systems)
Land speculation that occurs on the urban border can be very problematic to the healthy development of cities—critical to economic growth. Speculative land investors, concerned with profits from trading in landed property, can especially affect developing countries where regulation is often poorly controlled and overly bureaucratic. An investigation into the factors motivating land speculators operating in the urban fringe of the city of Shashemene, Ethiopia is examined. The paper, in addition to contributing to the literature, is the second-known attempt and extension of the authors’ pilot research to study the behavior of land speculators in the urban fringe of a growing Ethiopian city. A theoretical framework and conceptual breakdown are put together with historical reference to early land speculation examples. Two questionnaires were separately administered with a representative random sample of 159 members from the local land developer association (i.e., investors) and 24 senior officials from the study area. A principal component analysis categorized the most significant dynamics in controlling land speculation procurements. Results indicated motivational reasoning as the prime cause for speculative activities. Evidence indicated that land speculation is a critical dynamic for self-worth especially with business-oriented persons. Entropy, the disorder of the communicative data, suggests a possible rethinking of the way government should intervene in the urban property market. As such, developmental smart cities in Ethiopia must thoroughly consider the dynamisms of speculative activities and its effects on local housing as it moves forward–in the 2020s. View Full-Text
Keywords: speculation; land acquisition; motivation; real estate; development; Ethiopia speculation; land acquisition; motivation; real estate; development; Ethiopia
Show Figures

Figure 1

MDPI and ACS Style

Gemeda, B.S.; Abebe, B.G.; Paczoski, A.; Xie, Y.; Cirella, G.T. What Motivates Speculators to Speculate? Entropy 2020, 22, 59.

AMA Style

Gemeda BS, Abebe BG, Paczoski A, Xie Y, Cirella GT. What Motivates Speculators to Speculate? Entropy. 2020; 22(1):59.

Chicago/Turabian Style

Gemeda, Bedane S., Birhanu G. Abebe, Andrzej Paczoski, Yi Xie, and Giuseppe T. Cirella 2020. "What Motivates Speculators to Speculate?" Entropy 22, no. 1: 59.

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

Back to TopTop