MODEL CENTRAL PLACE THEORY centralplace theory economics and

MODEL: CENTRAL PLACE THEORY

central-place theory economics and geography Main location theory concerning the size and distribution of central places (settlements) within a system. Central-place theory attempts to illustrate how settlements locate in relation to one another, the amount of market area a central place can control, and why some central places function as hamlets, villages, towns, or cities.

• The theory consists of two basic concepts: • 1) threshold -- the minimum market needed to bring a firm or city selling goods and services into existence and to keep it in business • 2) range -- the average maximum distance people will travel to purchase goods and services

Assumptions: Christaller made a number of assumptions such as: All areas have • an isotropic (all flat) surface • an evenly distributed population • evenly distributed resources • similar purchasing power of all consumers and consumers will patronize nearest market • transportation costs equal in all directions and proportional to distance • no excess profits (Perfect competition)

�� A Central Place is a settlement which provides one or more services for the population living around it. �� Simple basic services (e. g. grocery stores) are said to be of low order while specialized services (e. g. universities) are said to be of high order. �� Having a high order service implies there are low order services around it, but not vice versa. �� Settlements which provide low order services are said to be low order settlements. Settlements that provide high order services are said to be high order settlements. �� The sphere of influence is the area under influence of the Central Place.

Distance decay models A. Inverse distance decay, α/dβ B. Exponential distance decay, αe‑βd