1. 1 Urban Service Centres Cities as centres of... Control Production Distribution over a homogenous umland uniform distribution pattern

2. 2 Central Place Theory: Explaining the Geography of Urban 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)

3. 3 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

4. 4 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

5. 5 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

6. 6 Market location

7. 7 Spatial Demand Cone RANGE: The spatial extent of demand before demand drops to zero Increasing real price

8. 8 Demand = zero

9. 9 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

10. 10 Implications of the RANGE R T M Isotropic surface Area of Extra ProfitMin area required to stay in business (normal profits) ? Unmet demand for same good or service