Though many regard the city as a growth engine, we can easily see how our own experience leads us to the hard truth. The core of the city growth is created by the suppression of growth in its nearby environment.
in this video, I explain how Hassle-Distance determines the Suppression Zone of the city and on the way also explains what creates the Induced Demand in urban transportation.
“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?