efficiencies of density will decline at the rate of consumer adoption and private-sector innovation. And that rate is typically very fast.
The First Principles of Urbanism: Part II
Rohit T. Aggarwala
2026

I think that this is mostly accurate, but the one efficiency in which private sector can keep raising is the benefits of physical interaction. If the private sector can innovate around new in-person experiences that raise the value of human interaction, then to stay ahead cities could pursue a dual strategy of acting quickly to reduce the costs of density, and encouraging private sectors to innovate around physical interaction. You’d mentioned earlier that you think physical interaction experiences will become more valuable but less frequent: if some innovation could make these experiences so much more valuable that humans minimize their intense immersion in virtual experiences, cities would continue to have a leg up. The new excitement around live music experiences, especially in cities where there is enough critical mass to set up such experiences, strikes me a one such innovation. Of course, this type of innovation might be less tech-driven, so less relevant to the intersection between urban and tech.

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