Lecture 8 Central Place Theory

8/10/2019 Lecture 8 Central Place Theory

1/23

Central Place TheoryGeog 315: Lecture 8

Walter Christaller&

August Losch

Translation from the original1933 German was done by

Baskin in 1966.

He started to play with the

maps, connecting towns of the

same size with straight lines

until his maps were filled with

triangles.

These triangles appeared to

show some regularity in a

hexagonal pattern.


2/23

Introduction

Walter Christallers Central Place Theory developed in 1933 can beseen as a groundbreaking theory that seeks to study geographicalspace as that in which the locations of retail outlets or central placesmay be mapped.

The theory was also an attempt to explain the nature, sites and

spacing of retail centres as central places to surroundingpopulations. Note also contributions to market area analysis byGatrell A., (1983). Applebaum, (19) and Ghyoot (1992)

The theory relied on two concepts: thresholdandrange.

Every good service must have a range and a threshold. The size ofa market area is a function of its threshold and range, but has adirect influence with its threshold (Rodrigue, 2003).


3/23

What is a central place?

A central place is a settlement whose primefunction is the provision of goods and services to adispersed population around it or hinterland. It mayvary in size from a village to a primate city andforms a link in a hierarchy.

Its sphere of influence or urban field or hinterland isthe area that comes under its economic, social andpolitical or administrative influence

The size, order, spatial distribution andinterrelatedness of settlements within an area orregion are the key issues at the heart of the theory


4/23


5/23

Threshold and Range

Figure 1: Threshold and range

Range of a good or service Maximum distance people are

willing to travel to obtain it.It is dependent on the value ofthe good, the distance, and thefrequency that the service isneeded.It is the farthest distance

measured in time, cost&convenienceover which either acustomer would be prepared totravel to obtain it or a suppliertravel to provide it.

Threshold of a good or service

The minimum number of peoplerequired to support it, ensuringreasonable profit.The more specialized theservice the greater the numberof people required to make it

viable.


6/23

ATM

Catchments

Finding the best new bank and ATM location for business expansion is a reallychallenging task and it requires quite a huge sum of capital to get it moving.Management, therefore, in a bid to feel secured that wherever they are moving tohas the ability to understand their concept and provide insight for strategic planning

A catchment area, among its various definitions, can be explained as the areaandpopulationfrom which a city or individual service attracts visitors or customers(www.wilkipedia.com, 2006)

A banks catchment area is the geographic areafrom which customersare willingand able to engage its servicesand patronize their products. It is the geographicalarea served by the bank

For a bank/ATM to be profitable in its operations, however, its market must have arange higher than its threshold

This is one of the primary considerations in the planning of any service-deliveryorganization.

.


7/23

ATM Threshold and Range

Figure 3: Market Threshold and Range

SOURCE: Rodrigue, 2006

The range is a function of

transport costs, time or

convenience

If the patronage of an ATMmachine falls below the thresholdlevel, the ATM will operate belowcapacity and thus likely to be at aloss.

However, with an increase in thepatronage of a cash machineabove the minimum, it will operateat full capacity or even beyond.Profits for this machine willincrease leading to increased

competition from others.The frequency of use of themachine is important in assessingthe extent of market threshold,which is often linked to the level ofincome and easy accessibility toand from the machine.


8/23

Threshold and Range (Contd.)

Customers travel in from both within the threshold and range to the ATM.However, in theory, beyond the range, at point 3 in Figure 3 above, mostcustomers should be unwilling to patronise the ATM services.

Different thresholds exist depending on the types of services the ATM provides,its reliability, availability of other ATMs nearby.

A threshold may be as low as 250 persons for a banks ATM and thereforevarious off-site locations at places of higher concentrations whereas anotherbanks ATM might have about 1500 persons for its threshold population becauseof fewer locations usually at the branch sites.

If the patronage of a machine falls below the threshold level, the ATM willoperate below capacity and thus likely to be at a loss. However, with an increasein the patronage of a cash machine above the minimum, it will operate at full

capacity or even beyond. Profits for this machine will increase leading toincreased competition from others.

The frequency of use of the machine is important in assessing the extent ofmarket threshold, which is often linked to the level of income and easyaccessibility to and from the machine.


9/23

Assumptions of the CPT There is an unbounded flat land so that transport was equally

easy and cheap. Transport cost is therefore proportional to the

distance from the central place using the only means oftransport, donkey cart

Population was evenly distributed across the plain

Goods and services are obtained from the nearest central placeonly

Resources are evenly distributed across the plain All customers had the same purchasing power and made

similar demands

Some central places offered only low-ordergoods with smallsphere of influence while others offered higher-ordergoodswith larger spheres of influence

No excess profit would be made by any one central place, aseach locate as far as possible from a rival to maximize profits.

He also assumed free market competition in that both supplierand customer would make decisions entirely on economicgrounds.


10/23

The Central Place Hierarchy Within any region the hierarchy of central places can

be established by classifying each central place

according to the highest order good or service itsupplies e.g. University, SHS, JSS, Creche, etc.

At the apex of the hierarchy there will be the largestcentral place in a region with its catchments arealarge enough to support more than one outlet for allthe orders of goods and services. Below this leadingcentral place the hierarchy progressively descends tothe lowest order.

Empirically there may not only be regularity in thesize and order of places and the number of placesfound at each level of the hierarchy, but alsoregularity of the spatial distribution of central places

for any one level and between different orders ofcentral laces


11/23

Hierarchical spatial arrangement and

nesting of central places - Hexagons


12/23


13/23

Minimizes the numberof settlements serving

an area by having eachat the meeting point ofthree hexagons:

K3 = 1/3 x 6 + 1 = 3

K=3 or Marketing Principle

Th fi t ( i th fi ) i i i th b f ttl t


14/23

The first (a in the figure) minimizes the number of settlementsserving an area by having each at the meeting point of threehexagons. This is his k = 3 (or marketing principle) model, inwhich the number of settlements at each level of the hierarchybelow the second is three times the number at the next highest.

(Thus, with one at the highest, seventh, order, the numbers are1, 2, 6, 18, 54, 162, 486.) The figure (a) illustrates thisarrangement with a three-level hierarchy only.


15/23

Minimizes thelength of roadsneeded to join all

adjacent pairs ofcentral places.

K4 = 1/2 x 6 + 1 = 4

K=4 or Transportation Principle


16/23

In the k = 4 or transport principle, the goal is to minimize the

length of roads needed to join all adjacent pairs of central

places. As shown in (b), each settlement is centrally located on

each sideof a hexagon, at the boundary of two rather than

three hinterlands. The number of settlements is thus greaterthan in the k = 3 model (in the ratio 1,2,8,32, 128,512,2048).


17/23

Each lower orderhinterland is nested

administratively orexclusivelywithinthat of a singlehigher-order central

place only

K7 = 6 x 1 + 1 = 7

K=7 or Administrative Principle


18/23

In the k = 7 or administrative principle, (fig. c ) each lower order

hinterland nested exclusively within that of a single higher-order

central place only - producing a sequence of 1, 6, 42, 294,

2058, 14,406, and 100,842 settlements.

L t t C t t


19/23

L m tat ons Cr t que o t eCentral Place Theory

Change in demand pattern of goods and services because ofaffluence, changes in taste and preferences and greatermobility enabling people to travel further to do their shoppingand obtain other services

Technological innovation and progress has also broughtchanges in the ways provision of goods and services are

organised and located

Increased government intervention through planning measuresand other legislation has also interfered in the operation of themarket forces which help to shape the central place system

The number, location, and spatial organisation of urban centresis also influenced by the degree or localisation ordispersal/uneven distribution of the resources of which theurban centres directly or indirectly rely.

Rigidity


20/23

Strengths of the Central Place Theory

Excellent Theoretical tool: Bunge (1962) seestheory as useful for theoretical geographye.g. Marketing Principle used to plan OostPolder in the Netherlands.

Administrative Principle used `resolution` of the`Eastern Question`: Christaller was made anexpert adviser in the `Reich Commissariat for the

Strengthening of Germany`(Freeman,1987).


21/23

CONCLUSION

Despite recent changes the concept , it does

have some values as an analytical tool

It can still help identify more clearly the role of

settlements as places of trade and exchange

and the extent to which this has influencedthe nature of the settlement pattern

developing in a region

It encourages us to think of individual

settlements in their wider context and to seek

above all some order in the spacing and

interrelatedness of settlements.


22/23

Sources

P J Ambrose 1969. Concepts in

Geography. Longman. Pages 12-133

Peter E. Lloyd and Peter Dicken. Location

in space: a theoretical approach to

economic geography. Harper and Row.

Pages 11-16


23/23

Trial questions The central place theory provides a platform for

understanding the size, order, spatial distributionand interrelatedness of settlements within anarea or region. Expatiate

Walter Christallers central place theory is builton unrealistic assumptions. Provide a critique ofhis theory

The range and threshold are the cardinalprinciples of the central place theory. Discusshow bakeries would mushroom over a givenregion based on these principles

Documents

Lecture 8 Central Place Theory