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“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

In this chapter we argue that South Africa's premier city, Johannesburg, has undergone a massive reconfiguration of its social geography since the demise of formal apartheid. Using census data and geographic information systems (GIS), we present evidence that this spatial transformation has been driven by a process of residential deracialization but one that has taken place within narrow class bands. Indeed, we show that change has been marked by a new process of middle-class formation that has specifically taken the form of what we call middle-class enclavization. We show moreover that this process of enclavization is marked by internal fragmentation with the increasing spatial compartmentalization of different fractions of the middle class. These findings in turn support broader arguments in the literature that emphasize the strategic practices, including the centrality of residential location, through which upper middle-class privilege is preserved.

This chapter reviews models of decision-making and choice under conditions of certainty. It allows readers to position the contribution of the other chapters in this book in the historical development of the topic area.

Bounded rationality is defined in terms of a strategy to simplify the decision-making process. Based on this definition, different models are reviewed. These models have assumed that individuals simplify the decision-making process by considering a subset of attributes, and/or a subset of choice alternatives and/or by disregarding small differences between attribute differences.

A body of empirical evidence has accumulated showing that under some circumstances the principle of bounded rationality better explains observed choices than the principle of utility maximization. Differences in predictive performance with utility-maximizing models are however small.

The chapter provides a detailed account of the different models, based on the principle of bounded rationality, that have been suggested over the years in travel behaviour analysis. The potential relevance of these models is articulated, model specifications are discussed and a selection of empirical evidence is presented. Aspects of an agenda of future research are identified.