By Leo van den Berg
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Extra resources for A Study of Growth and Decline. Urban Europe
For each of these groups a welfare function can be specified, distinguished from others by the weighting assigned to the various welfare potentials; obviously, one socio-economic group of households may value employment more than environment, while another group's preferences may be just the opposite. 3, the concepts of objective function, welfare component, and potential will be used in Chapter 3 in an attempt to explain the development of urban structures as the collective result of the goal-oriented behaviour of all the actors involved.
In the Mathematical Appendix this argument has been worked out. At this stage we will not go into any further detail concerning this point but concentrate rather on another aspect of the welfare function, viz. that it differs in structure for different socio-economic groups of the population. 1) applies to individual households in general. It is more realistic, however, to identify more or less homogeneous groups of households showing conformity in spatial behaviour and in the environmental qualities they require.
A) Every industry is related in many ways with the location of the population and of other industries; the quality of its location depends on such factors as the population's size, composition, level of training, and income, the nature or volume of production processes, technology, and, to a considerable extent, transport facilities. Changes in these factors constantly call for compensating measures to safeguard the continuity of the firm. Such measures may involve the firm's own trade methods; they may also imply a spatial move to a new location which, given the changed conditions, has become more optimal than the old one.