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Urban Economic Geography Central Place Theory Urban Land Use/Development/Downtowns Redevelopment World Cities Hypothesis & Network

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Page 1: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Urban Economic GeographyCentral Place TheoryUrban Land Use/Development/Downtowns

RedevelopmentWorld Cities Hypothesis & Network

Page 2: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

CENTRAL PLACE THEORY

Page 3: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

What is it?A basic theory describing size

distribution of urban locations based upon these locations providing goods and services

Page 4: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Who is Christaller?

Page 5: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Who is Christaller?Walter Christaller, a German

geographer, originally proposed the Central Place Theory (CPT) in 1933 (trans. 1966). Christaller was studying the urban settlements in Southern Germany and advanced this theory as a means of understanding how urban settlements evolve and are spaced out in relation to each other.

Page 6: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Terms Hinterland – Area where a city is the

dominant producer of a particular good or service

Field of Influence – Any location where a city has influence

Centrality – Amount of draw to a particular place

Page 7: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Terms Consumer Range – Distance a consumer

will travel for a particular good or service Threshold – Minimum population needed to

keep a business in operation Hierarchy of market centers - Settlements

range in size from large cities - with many services to smaller villages and towns with some services, to small hamlets - which offer few services.

Page 8: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Order of Goods High Order

1. High Price

2. Low Frequency of Purchase

3. High Threshold

4. Large Consumer Range

Low Order

1. Low Price

2. High Frequency of Purchase

3. Low Threshold

4. Small Consumer Range

Page 9: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Order of Places

® The higher order of goods offered the higher order of the place

® Higher order places are more widely spread out

® Hierarchy development

Page 10: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Assumptions 1. There is an unbounded uniform plain

on which there is equal ease of transport in all directions. Transport costs are proportional to distance and there is only one type of transport.

Page 11: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Assumptions2. Population is evenly distributed over

the plain.

Page 12: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Assumptions3. Central places (settlements) are

located on the plain to provide goods, services, and administrative functions to their hinterlands. Examples of these are hardware shops (goods), dry cleaners (services), and town planning departments (administrative).

Page 13: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Assumptions4. Consumers minimize the distance to

be travelled.

Page 14: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Assumptions5. The suppliers of these functions act

as economic [agents]; that is, they attempt to maximize their profits by locating on the plain to obtain the largest possible market. Since people visit the nearest centre, suppliers will locate as far away from one another as possible so as to maximize their market areas.

Page 15: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Assumptions 6. It is assumed that these higher order

centres supply certain functions (higher order functions) which are not offered by lower order centres. They also provide all the functions (lower order functions) that are provided in lower order centres.[i.e., you can still buy bread and milk in Denver, but international airports do not exist in smaller towns and cities, like Parker.]

Page 16: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Assumptions7. All consumers have the same income

and the same demand for goods and services.

Page 17: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Relax Assumptions:

1. Population income variation--wealthy vs. non-wealthy areas, wealthy areas do not usually need as large of a threshold

2. Variation in transport surfaces

3. Consumer Behaviour/Individual Preferences

4. Profits

Page 18: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Shape of HinterlandsThe model in

CPT is explained

using geometric

shapes, such as hexagons and triangles

Page 19: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

19

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?Unmet demand for

same good or service

Page 20: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network
Page 21: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Is Central Place Theory applicable in the real world or is it just a theory?

Any contemporary real world examples of the patterns seen in CPT?

There are, however, some near perfect examples of Christaller’s theory to be found in the Canadian prairies and the Netherlands. Also Iowa and Wisconsin.

Page 22: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

A GENERAL GRAPH CONCERNING FUNCTIONS !

Page 23: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Why doesn’t this always work?

- Large areas of flat land rarely exist- Transport has changed since his day- People/wealth are not evenly distributed- Folks don’t always choose the central place!- Purchasing power/needs not all the same- Governments have control over location of industry/towns- Perfect competition = unreal- Places don’t stay the same forever- Does not fit industrial areas

Page 24: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Market, - city, town, village, hamlet

Market area / hinterland

Page 25: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Consumers near center obtain services from local establishments.

The closer to the periphery the greater the % of customers who will chose to obtain services from other nodes (cities). People are equally likely to use the service, or go elsewhere.

Page 26: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Fast Food McDonald’s According to your text book McDonald’s has a

range of 3 miles. The typical threshold is 10,000 people.

Page 27: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Movie Theaters

Page 28: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Movie Theaters: Range?

Page 29: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Movie Theaters: Threshold - about 500 a night or 150,000

Page 30: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Ikea

Page 31: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Ikea

Page 32: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Ikea

Page 33: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Ikea

Page 34: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Ikea - Range?

Page 35: Urban Economic Geography  Central Place Theory  Urban Land Use/Development/Downtowns Redevelopment  World Cities Hypothesis & Network

Ikea - Threshold?