Presentation by Tomaz Ponce Dentinho, University of Azores Advanced Brainstorm Carrefour (ABC): ‘Smart People in Smart Cities’ Matej Bel University, Banská Bystrica, Slovakia (August, 2016)

1. Data requirements for smart people in smart cities
Tomaz Ponce Dentinho – University of Azores
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac

2. Presentation
▪ The unity of the intellect
▪ Data, Information, knowledge, wisdom and Grace
▪ Data for Smart People
▪ So What?
▪ ICTs Information Supply and Information Demand.
▪ Utility functions with maximum satisfaction.
▪ Information for Smart Cities: Bid-rents, CBA and Technological Evolution.
▪ From individual utility functions to utility functions of human interaction.
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac

3. The unity of the Intellect
▪ The Soul is, firstly, the thing for which we fill, think, move and live. (Aristoteles, The Soul II,
1, 414 a 12-14).
▪ Fillings can be corrupt and obliterate other fillings but thoughts are not corrupted by more
intellectual achievements (Aristoteles, The Soul III, 4, 429 a 29-b5)
▪ Sensations, actions and thoughts are potential before being acts (Aristoteles, The
generation of Animals II, 3, 736 b 27-28).
▪ The intellect is a capacity of the Soul that can be separated from the body but the Soul is
an act of the body (St Thomas Aquinas, The Unity of the Intellect).
▪ Every men wants to know the truth (Aristoteles, Metaphysics I, 1, 980 p.22)
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac

4. REALITY
knowledge
Technology
Data
Signals Decisions
Acts
Objectives
Impacts
Effects
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
Every men wants to know the truth
The intellect is a capacity of the Soul that
can be separated from the body but the
Soul is an act of the body.
Fillings can be corrupt and obliterate other
fillings but thoughts are not corrupted by
more intellectual achievements
Sensations, actions and thoughts are potential
before being acts
The Soul is, firstly, the thing for
which we fill, think, move and live.
So What?
Data, Information, Knowledge, Wisdom and Grace

5. Data for Smart People – Maximum is not Optimum
▪ 𝑈 = − 𝑛=1
𝑛=2
𝑋𝑖. 𝐿𝑛(𝑋𝑖 )
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
0,0
0,2
0,4
0,6
0,8
1
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1
Entropy Utility Function
▪ Shannon, C., and W. Weaver. (1949). The Mathematical Theory of Communication. Urbana, IL: University of Illinois Press.
▪ Wilson, A. G. (1970). Entropy in Urban and Regional Modelling. London: Pion.
The Soul is, firstly, the thing
for which we fill, think, move
and live (Aristoteles, The
Soul II, 1, 414 a 12-14).
X1 = 0,4
X2 = 0,4

6. Data for Smart People – Ex ante Information
▪ 𝑈 = 𝑛=1
𝑛=2
𝑋𝑖. 𝐿𝑛(
𝑋𝑖
Ẍ𝑖
)
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
▪ Snickars, F., and J. W. Weibull. (1977). ‘‘A Minimum Information Principle.’’ Regional Science and Urban Economics 7, 137–68
0,0
0,5
1
1,5
2
2,5
-5
-4,5
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
1
1,5
0,0
0,25
0,5
0,75
1
1,25
1,5
1,75
2
2,25
2,5
Utility Function with Ex-ante Information
Fillings can be corrupt and
obliterate other fillings but
thoughts are not corrupted by
more intellectual achievements
(Aristoteles, The Soul III, 4, 429 a
29-b5)
Ẍ 1 = 1,0
Ẍ 2 = 2,7
X1 = 0,3
X2 = 1,0

7. Data for Smart People – Exante and Cost Information
▪ 𝑀𝑎𝑥 𝑊 = 𝑛=1
𝑛=2
𝑋𝑖. 𝐿𝑛(
𝑋𝑖
Ẍ𝑖
) -
β. 𝑛=1
𝑛=2
𝑋𝑖. 𝐶𝑖
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
0,0
0,5
1
1,5
2
2,5
-5
-4,5
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
1
1,5
Utility Function with Ex-ante Information and Cost
Restriction
Wilson, A. G., J. D. Coelho, S. M. Macgill, and H. C. W. L Williams. (1981). Optimization in Locational and Transport Analysis. Chichester,
UK: Wiley.
Sensations, actions and
thoughts are potential before
being acts (Aristoteles, The
generation of Animals II, 3, 736
b 27-28).
Ẍ 1 = 1,0
Ẍ 2 = 2,7
C12=1,0
β = 1,0
X1 = 0,3
X2= 1,0

8. Data for Smart People – Exante, Cost and Scarcity Information
▪ 𝑀𝑎𝑥 𝑊 = 𝑛=1
𝑛=2
𝑋𝑖. 𝐿𝑛(
𝑋𝑖
Ẍ𝑖
) -
β. 𝑛=1
𝑛=2
𝑋𝑖. 𝐶𝑖 - 𝑛=1
𝑛=2
𝑋𝑖. α𝑖
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
Dentinho, TP (2016). Data Requirements for Information Decision Systems of City Managers. JOINT MEETING NECTAR
CLUSTER 6/REGIONAL SCIENCE ACADEMY, 2-‐3 June 2016 –Paris, “Big Data, Transport Policies and Accessibility”
The intellect is a capacity of
the Soul that can be separated
from the body but the Soul is
an act of the body (St Thomas
Aquinas, The Unity of the
Intellect).
Ẍ 1 = 1,0
Ẍ 2 = 2,7
C12=1,0
β = 1,0
X′1 = 0,1
α1 = 0,4
X1 = 0,1
X2= 1,0
0,0
0,75
1,5
2,25
-6
-5,5
-5
-4,5
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
1
1,5
0,0
0,25
0,5
0,75
1
1,25
1,5
1,75
2
2,25
2,5
Utility Function with Ex-ante Information and
Income and Physical Restrictions

9. Data for Smart People – Good Costs and Scarcity Information
▪ 𝑀𝑎𝑥 𝑊 = 𝑛=1
𝑛=2
𝑋𝑖. 𝐿𝑛(
𝑋𝑖
Ẍ´´𝑖
) -
β. 𝑛=1
𝑛=2
𝑋𝑖. 𝐶𝑖 - 𝑛=1
𝑛=2
𝑋𝑖. α𝑖
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
Dentinho, TP (2016). Data requirements for smart people in smart cities, Smart People in Smart Cities”, 28th-30th August 2016. Faculty of
Economics, Matej Bel University, Banská Bystrica, Slovakiac.
Ẍ´´ 1=2,7
Ẍ′′2=1,0
C12=1,0
β = 1,0
X′1 = 0,1
α1 = 1,4
X1 = 0,1
X2= 0,5
0,0
0,75
1,5
2,25
-8,5
-8
-7,5
-7
-6,5
-6
-5,5
-5
-4,5
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
0,0
0,25
0,5
0,75
1
1,25
1,5
1,75
2
2,25
2,5
Utility Function with Good Information and
Income and Physical Restrictions
Every men wants to know
the truth (Aristoteles,
Metaphysics I, 1, 980 p.22)

10. REALITY
knowledge
Technology
Data
Signals Decisions
Acts
Objectives
Impacts
Effects
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
Smart People need wisdom to discern what improves and sustains happiness. Grace helps.
Smart people need information
on income and costs.
Data, Information, Knowledge, Wisdom and Grace
Smart people need information
on physical and technological
constraints, on the shadow
prices they imply and on the
innovations available to
overcome those constraints
Smart people need information on the impacts and effects of their acts on themselves, on the others and on the reality

11. So What?
ICTs Information Supply and Information Demand.
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
It is like having bad information on
costs and physical restrictions
Ẍ´´ 1=2,7
Ẍ′′2=1,0
C12=1,0
β = 1,0
X′1 = 0,1
α1 = 1,4
X1 = 0,1
X2= 0,5
0,0
0,75
1,5
2,25
-8,5
-8
-7,5
-7
-6,5
-6
-5,5
-5
-4,5
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
0,0
0,5
1
1,5
2
2,5
Utility Function with Good
Information on Income and
Physical Restrictions
Ẍ 1 = 1,0
Ẍ 2 = 2,7
C12=1,0
β = 1,0
X′1 = 0,1
α1 = 0,4
X1 = 0,1
X2= 1,0
0,0
0,75
1,5
2,25
-6
-5,5
-5
-4,5
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
1
1,5
0,0
0,5
1
1,5
2
2,5
Utility Function with Bad
Information on Income and
Physical Restrictions

12. So What?
Utility functions with Ex-ante information on the best
0 €
20 €
40 €
60 €
80 €
100 €
120 €
140 €
160 €
0 50 100 150
Model without ex ante
information
Invertebrates Algae
Fish Birds
Mammals Mammals Scilly
Birds Gdansk Algae Gdansk
0 €
50 €
100 €
0 50 100
Model with ex-ante
information
Inverts Az Fish Az Mammals Az
Algae Az Birds Az Inverterts Gz
Fish Gz Mammals Gz Algae Gz
Birds Gz Invertes Sc Fish Sc
Mammals Sc Algae Sc Birds Sc
0 €
1 €
10 €
100 €
1 000 €
10 000 €
0 100 200 300 400 500
WTPtoavoidspeciesloss
Species Loss
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac

13. So What?
MARGINAL SPATIAL TAXES = MARGINAL SPATIAL BENEFITS
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac
▪ 𝑀𝑎𝑥 𝑊 = 𝑛=1
𝑛=2
𝑋𝑖. 𝐿𝑛(
𝑋𝑖
Ẍ𝑖
) -
β. 𝑛=1
𝑛=2
𝑋𝑖. 𝐶𝑖 - 𝑛=1
𝑛=2
𝑋𝑖. α𝑖
Ẍ 1 = 1,0
Ẍ 2 = 2,7
C12=1,0
β = 1,0
X′1 = 0,1
α1 = 0,4
X1 = 0,1
X2= 1,0
0,0
0,75
1,5
2,25
-6
-5,5
-5
-4,5
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
1
1,5
0,0
0,25
0,5
0,75
1
1,25
1,5
1,75
2
2,25
2,5
Utility Function with Ex-ante Information
and Income and Physical Restrictions

14. Utility functions of human interaction
REALITY
knowledge
Technology
Data
Sign
als
Deci
sion
s
Acts
Objectives
ImpactsREALITY
knowledge
Technology
Data
Sign
als
Deci
sion
s
Acts
Objectives
Impacts
Effects
Effects
Impacts
Advanced Brainstorm Carrefour on
“Smart People in Smart Cities”, 28th-30th August 2016. Faculty
of Economics, Matej Bel University, Banská Bystrica, Slovakiac