On Thursday, October 25, 2001 9:18 PM Ben Berry [EMAIL PROTECTED] wrote: > Markets do very well at allocating goods like coffee or gasoline or clothes > in the short term because of their flexibility in response to short term > preferences. They don't do well in things like supplying housing in proper > configurations and locations because housing is a durable good that once > sold is relatively permanent (30-100 years or more). He had some statistics > to argue that only a very small number of people purchase new homes and > apartments. These people have strong preference for living in only *new* > residences. Since they won't be living in the places more than 5 or 10 years > they don't care if the place is ugly to most people or shoddily constructed. > This leaves the rest of the population with only ugly and shoddy houses to > choose from when they eventually need to move. Thus planners are needed to > insure pretty neighborhoods, adequate transportation resources, etc.
Preliminary answer -- because it's late and even I get tired every few months:) -- is that there isn't as much difference between this as one might think. Yes, houses are not exactly like coffee beans, but I've noticed most people like low quality coffee. At my previous job, people drank the coffee at work -- supplied by the business -- and said it was awful, but had more than one cup a day. Me? I will go out of my way for a good cup or coffee or do without. My only point with the above is that housing, neighborhoods, infrastructure come in high and low quality -- whether because they were built shoddily to begin with, not maintained afterward, or whatever -- too. Building good from the start, planning correctly, maintenance afterward all are economic goods. Okay, that my short answer for now. 'night! Daniel Ust http://uweb.superlink.net/neptune/MyWorks.html
