1 Urban Service Centres Cities as centres of... Control Production Distribution over a homogenous...
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Transcript of 1 Urban Service Centres Cities as centres of... Control Production Distribution over a homogenous...
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Urban Service Centres
• Cities as centres of...• Control• Production• Distribution over a homogenous
umland• uniform distribution pattern
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Central Place Theory:Explaining the Geography ofUrban Service Centres
• Model: noun, verb, adjective• Spatial model• Abstraction• Simplifying assumptions• Theoretical basis for urban (Central
Place) hierarchies• Walter Christaller The Location of
Central Places in Southern Germany(1933)
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Simplifying assumptions:• Land Area
• isotropic surface (flat / homogeneous)• unbounded plain• no variation in raw material distribution• equal ease of movement in all directions• transportation costs proportional to distance
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Simplifying assumptions:
• Population• Homogeneously distributed• Homogeneous demand
• Tastes/preferences• Spending• Behaviour
• Rational Economic Persons • aware of alternatives• producers=profit-maximizers• consumers=optimizing
• perfectly competitive market
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Market and Demand
• Market is a point location• Distributes its goods within a
market area.• Demand for good:
• Market price (fob market)• +• Cost of transport (to & from) market
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Distance
Q
De
man
ded
Demand
Distance
FLIP
Dis
tanc
e
Q Demanded
Demand
Rea
l Pric
e p
er U
nit
Market
Threshold
Range
Threshold
Range
Market location
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DistanceQ
D
em
ande
d
Demand
Distance
FLIP
Dis
tanc
e
Q Demanded
Demand
Rea
l Pric
e p
er U
nit
Market
Threshold
Range
Threshold
Range
Market location
Spatial Demand Cone
RANGE:The spatial extent of demand before demand drops to zero
Increasing real price
8Distance
Q
De
man
ded
Demand
Distance
FLIP
Dis
tanc
e
Q Demanded
Demand
Rea
l Pric
e p
er U
nit
Market
Threshold
Range
Threshold
Range
Demand = zero
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Important definitions:
• Threshold:• minimum DEMAND (volume of sales) needed
for a business to stay in operation (and make a “normal” profit).
• Range:• maximum distance over which a good can be
sold from point P (i.e. where real price is low enough that people will travel to market to buy it)
• Profit = R - T• Threshold and range is the spatial basis
for profit
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Implications of the RANGE
R
T
M
Isotropic surface
Area of Extra Profit Min area required to stay in business (normal profits)
?Unmet demand for
same good or service