ABSTRACT
This chapter explores feasible distribution of land values utilities and determines consumption in a way which is consistent with the requirements for optimality. It shows that specifies optimal land values and utilities corresponding to the given degree of aversion to inequality. Equilibrium is characterised by an absolute dispersion of power. Optimality characterised by an absolute concentration of power. Suppose that an optimal city is to be created. Since it is unknown whether everyone should enjoy the same level of utility at the optimum, the planner must also determine the optimal pattern of land values. Thus, in addition to assuming all decision-making powers of individuals, the planner must also set aside the land-market mechanism which led to the determination of bid-rents. One does not know a priori whether the optimal city should be at equilibrium or not; in other words, whether utility should be invariant throughout.
