Central Place TheoryCentral Place Theory

ChristallerChristaller

What are services?What are services? Labor more important, but fewer unionsLabor more important, but fewer unions More women (“pink-collar” workers)More women (“pink-collar” workers) Tertiary, quaternary, or quinaryTertiary, quaternary, or quinary

Where are services?Where are services? From local to globalFrom local to global More developed = more service jobsMore developed = more service jobs ““Post-industrial” economiesPost-industrial” economies

Central place theoryCentral place theory

How are services distributed?How are services distributed? Why does a regular pattern exist?Why does a regular pattern exist? How are large and small cities How are large and small cities

connected?connected? Central place: market center for regionCentral place: market center for region

Central place theoryCentral place theory

Range: how far are you willing to travel for a Range: how far are you willing to travel for a service?service?

Threshold: how many customers do you need?Threshold: how many customers do you need? Assume shortest distance possibleAssume shortest distance possible Market area, not city size, mattersMarket area, not city size, matters

Central place theoryCentral place theory

Hexagonal market areasHexagonal market areas

– Cover all spaceCover all space

– No overlapNo overlap First order: largest threshold and rangeFirst order: largest threshold and range Second order, etc.Second order, etc.

First order

Range

First order

Range

First order

New range

First order

Second order

First order

Second order

First order

Second order

New range

First order

Second order

Third order

New range

First order

Second order

Third order

First order

Second order

Third order

Central place theoryCentral place theory

Accessibility based on time, not distanceAccessibility based on time, not distance Administrative principleAdministrative principle

– Political boundaries affect consumersPolitical boundaries affect consumers

– Lower taxes, more permissive rulesLower taxes, more permissive rules

So what?So what?

Model for regional developmentModel for regional development Explains decline as well as growthExplains decline as well as growth

– Neighborhood or city scaleNeighborhood or city scale The point is not the hexagons, but the The point is not the hexagons, but the

hierarchy and interconnectedness of places hierarchy and interconnectedness of places

Central Place Theory in ActionCentral Place Theory in Action

A real example in Wisconsin between Eau Claire and Madison

A pilot study proved that the location, distribution, and type of business advertised on billboards along Interstate Highway 94 between Madison and Eau Claire in Wisconsin significantly demonstrated the concepts of the Central Place Theory. To simplify (and demonstrated in Figure 1), Central Place Theory states that a customer will travel farther to purchase a product that is unique or scarce (Foust and deSouza, 1978).

The pilot study showed that fast food restaurants and gas stations tended to advertise between interstate interchanges; the majority of billboards advertising gas stations and fast food establishments were located at the next exit.

On the other hand, billboards advertising ski hills, the Wisconsin Dells, and House on the Rock (recreation venues) advertised much farther away from the destination (Figure 2). This implies that a much greater threshold number of customers was necessary to make these businesses profitable.

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Figure 2