“The city is an economic engine”. This built-in assumption is rooted in so many studies that it had become taken for granted. This video argues that as many urban indicators scale superlinearly, “Knowledge Spillover” just can’t be the mechanism behind it… but doing it in plain English.
What is “Super-linear”?
What is “Knowledge Spillover”?
OK, here it is, I’ll try to explain this urban behavioral model, The Gravity Model, as clearly as I can. It would probably be tricky to follow but fortunately, I’ll elaborate later on. So, deep breath…
My goal here is to show the mathematical equivalent of (don’t panic) Nash equilibrium on a large scale with many players. Just as in the example of the ice cream vendors, I am looking for the easiest way to explain why businesses are clustered in the city, using the simplest possible model.
Amazon and similar multinational companies have grown to become an essential part of world trade. Instead of going to the store, the store now comes to you. Well, this is convenient for the consumer, but what does it do to our cities? In the long run, the short-term profit of the private firm comes at what expense to the entire community?
If everything is so great, how come we have so much to complain about?
There are many articles discussing globalization but in my opinion the theory behind the phenomenon is lacking. I think that many people present globalization as if it is a clear-cut, good or bad issue. Doing so derails our ability to understand it. Globalization is good for some people and bad for others. To support one side of the debate and dismiss another is to turn your ears from the genuine distress of those beside you.