Perceiving Urban Transformation from the Perspective of Evolutionary Economics: Renewal of Houses in Bağdat Street, Istanbul

Abstract:

In this article, we analyze urban transformation in Istanbul using the concepts of evolutionary economics and show that it is a process driven by people’s desire to climb the social hierarchy through “costly signaling,” or conspicuous consumption, rather than by a desire to improve the functional quality of their living spaces. To understand the main motivation behind people’s demand for urban transformation, we conducted in-depth interviews with residents and observed that they endorse the process because it generates extensive costs, waste, and a decrease in the quality of life that can only be afforded by the wealthy, who thereby differentiate themselves from the less well-off. We argue that this is different from consumption decisions motivated solely by benefit maximization¬—a concept that is independent from the social context¬—and therefore can only be understood via evolutionary economics.

Keywords::

• consumption
• evolutionary economics
• urban transformation
• costly signaling

JEL Classification Codes::

• B52
• D91
• R39
• Z13

Notes

¹ Istanbul Shopping Fest, So Famous That It Is Just Called “The Street”: Bağdat Street.

² Nufusu.com. Kadikoy–Istanbul Nufusu.

³ Quoted by Rick Tilman (2006, 110).

⁴ Quoted by Alain De Botton (2008, 118).

⁵ Similar contradictions have been observed in human evolution. For example, a high level of the male hormone testosterone can result in reproductive success at an early age but can lead to prostate cancer at a later age. (Falger and Falger 2003, 78).

⁶ For example, Gad Saad has found that when people decide who to vote for, some features that they unconsciously value in the opposite sex, like height, weight, and facial symmetry, influence their choice. Evolutionally we have learned to value these traits in many areas of life (Saad 2003,126).

⁷ For the strategies of the upper classes in this competition please see: Andrew Trigg (2001).

⁸ See Martin Heidegger (1971), Kimberly Dovey (1985), and Maurice Merleau-Ponty (2013).

⁹ Some architectural touches that conformed to the Ottoman lifestyle were added to the interior spaces of the apartments. For these details see Öncel (2010). The interesting point is that the “indigenization” of apartment buildings, which were a symbol of Westernization, was not manifested in the exterior but in the intimate living spaces that were less visible.

¹⁰ For example, this was the response of a rich peasant when Rudolf Colloredeo-Mansfeld asked why he had added a roof to his house: “Because I had money.” He also noted that his roof was too expensive for others to imitate (Colloredo-Mansfeld, 855). Another man, when asked why people in his community were building larger homes than they needed, responded: “People when they have money want to show this” (850).

¹¹ The peasants reported that even though the tile now being used in construction was inferior to straw, “Straw is from ‘before’. People use tile now because they are imitating others. Poor people use straw” (Colloredo-Mansfeld, 858).

¹² According to economic theory, in the case of a surplus in supply, the market mechanism automatically reduces prices, and falling prices restore the market equilibrium by lowering the quantity supplied on the one hand and raising the quantity demanded, on the other. But it is a well-known fact that this mechanism does not work in the housing market in the short term because of downward stickiness of prices.

¹³ According to press reports, Bağdat Street is one of the five regions where the fastest increases in shop rentals were observed.

¹⁴ In order to understand the magnitude of this amount, let’s assume that the average rent for a family apartment in Istanbul is about 1000-2000 TL.

Additional information

Notes on contributors

Emre Balikci

Emre Balikci is visiting assistant professor at St. Lawrence University. Dicle Koylan is assistant professor of sociology at Dogus University.

Dicle Koylan

Emre Balikci is visiting assistant professor at St. Lawrence University. Dicle Koylan is assistant professor of sociology at Dogus University.