Comments on Stutz Chapter 6: Urban Lane Use: Theory and PracticeComments on Stutz Chapter 6: Urban Lane Use: Theory and PracticeObjectives:- To explore the relationship between urban growth and development- To explain how the process of city growth operates under free-market conditions- To extend von Thunen’s model to urban land-use configurations- To introduce land-use models that describe the spatial dispersion of activities in cities- To help show that the free market for space in the metropolis has produced a pattern of sprawl and social problemsCharacteristic of cities1. A city is a built environment—a tangible expression of religious, political, economic, and social forces that house a host of activities in proximity to one another.2. Urban places display dazzling diversity because the historical antecedents of modern patterns of daily living differ from one part of the world to another, from region to region.3. In Europe urban life began more than 2 thousand years ago, evolving from rural settlements.4. The emergence of the industrial city, a product of capitalism, resulted in lower transportation and communication costs for entrepreneurs who needed to interact with one another—initially, in and around the central business district (CBD).Cities and Societies Basic forms of society1. Exchange based societies are of three basic forms: egalitarian societies, rank societies, and stratified societies.2. Egalitarian societies are established through voluntary cooperative behavior with exchange dominated by reciprocity.3. Rank societies are dominated by redistribution—extraction by owners or rulers (voluntary or forced).4. Stratified societies do not have equal access to resources—dominated by market exchange. Stratified societies are most favorable for the 1division of labor, specialization of production, and technological and organizational advances.5. Cities do not evolve into egalitarian and rank societies, but this form may characterize exchanges among neighbors (shared child care, etc.) Transformation of market exchange1. Prior to the Industrial Revolution, market exchange was an appendageto the redistributive economy of the rank society. European cities were the extension of ruling classes with guilds as a dominant institution to regulate economic behavior. 2. Individual capitalism developed in the early stages of the Industrial Revolution in the mid 19th century.3. By the late 19th century corporate capitalism became the dominant growth force for Western cities.4. Power shifted to dominant economic institutions and urban governments. Reciprocity still exists but more at the neighborhood level.The Process of City Building Economies of scale and transportation costs attract industries to a city.1. The single firm production function and resource costs in the short runand the long run.a. The short run and diminishing returns.b. The long run and economies and diseconomies of scale2. Types of scale economiesa. Internal scale economies subject to direct management control due to production input indivisibilities and need to larger scale of output to increase productivity.b. External scale economies, called agglomeration economies, are either localization (in same industry) or urbanization (outside ofindustry but in the urban area.)c. Size limits are due to diseconomies of scale.3. Transportation costs of a single firm a. Depend on friction of distance.2Intraurban Spatial Organization1. Rent depends productivity of land use based on transportation cost savings due to access.2. Higher rent values result in substitution of capital for land and more intense land use.3. The competitive bidding process results in land use based on “its highest and best use.”4. Relative location is more important than site characteristics (although site characteristics can affect the cost of land use development.)Site demands for households1. Households are concerned with maximizing utility, subject to an income constraint.2. The wealthy can outbid the poor for land use sites based on their demand for access (less time spent commuting) versus space (amenities of suburbs).3. The bid-rent curve for residential use is flatter in areas with lower transportation costs but higher with a greater overall demand for access. Higher income may flatten the bid-rent curve if space is more desirable than access (or vice versa).Site demand for firms1. Firms are concerned with maximizing profits.2. The more important access is to net revenue the more they will bid forproximate land to their customers.3. The agglomeration economies and transport cost savings of inner city location are equal to the lower wages and rent costs of more distant suburban locations.4. If transportation cost savings are high firms will locate closer to the central city (other things equal).Market Outcomes1. Consider three uses: commercial, manufacturing, and residential with the highest transport cost associated with commercial and lowest with residential.32. Then the bid-rent curve will be the result of rent gradients that are the most steep for commercial use in the CBD, less steep for manufacturing use, and the least steep for residential use.3. Competitive bidding will result in concentric-zones allocating land according rent values equal to the “highest and best use” of land to that minimizes transportation costs.The Concentric-Zone Model1. Burgess focused on five zones from the center to periphery.a. The CBD with focus of commerce and social and civic activity and retail activity encircled by wholesaling and light manufacturing.b. The zone of transition characterized by residential deterioration and slums.c. The zone of independent workers’ homes—blue collar workers who have escaped the zone of slums.d. The zone of better residents—home of middle class familiese. The commuter suburbs—small satellite towns with middle and upper class residents.2. Land use invasion and succession occurs with outward movement of population and neighborhood filtering, adding to the supply of housing and movement of population from zone two to zone three andto the slum problem in zone two.3. New housing sets the upper limit on price and the pace of filtering in older neighborhoods.4. The concentric zone model may be modified to reflect a sector model that predicts land-use movements and rents radiating outward along transport corridors.The Multiple-Nuclei Model1. Assumes more than one desired location for access. Rent