Central Place Theory
Walter Christaller, a German geographer, created the Central Place Theory, a theory that attempts to explain the number, size, and location of urban settlements. The theory takes a central place, or the market center that people in the surrounding areas will be attracted to, and attempts to answer how and why distribution centers of goods and services are located where they are. In other words, large cities are the economic hubs with multiple connections for commerce.
Market Area: Also known as the hinterland, this is the area around which people will be attracted to a specific good or service. Within this area, as denoted by hexagons on a map, people will be more willing to go to the node at the center that meets their needs. Farther away from the node, and closer to the edges, people may be just as likely to go to this market area, or another just outside their periphery.
Determining Size: To figure out the size of a market area, human geographers need to know the range and threshold of whatever service they are researching.
There are several assumptions in the Central Place Theory, which have had some critiques by other geographers. Firstly, Christaller assumes there is a flat, isototropic plane with no physical barriers such as mountains. Secondly, there is uniform soil fertility, and thirdly, there is also a uniform transportation system in all directions. Finally, the Theory assumes that the population is evenly distributed.
These measures will help a business determine if opening a brand new location will be beneficial to its profitability. Geographers have adapted the gravity model for this purpose as well. The gravity model predicts that for a business to be profitable, it must find the optimal location which will be directly related to the number of individuals who will use this service in the area and inversely related to how far individual must be to travel to the service. In other words, how many people are in the area, and how many will not travel to the business due to distance.
Market Area: Also known as the hinterland, this is the area around which people will be attracted to a specific good or service. Within this area, as denoted by hexagons on a map, people will be more willing to go to the node at the center that meets their needs. Farther away from the node, and closer to the edges, people may be just as likely to go to this market area, or another just outside their periphery.
Determining Size: To figure out the size of a market area, human geographers need to know the range and threshold of whatever service they are researching.
1. Range: this is the maximum distance an individual will traverse to obtain the service. Depending on the service (doctor, lawyer) the individual may travel farther than for a service they need more regularly (groceries, retail).
2. Threshold: this is the minimum amount of individuals needed to support the service. Depending on the service will determine the threshold for the service to make a profit. Daycare providers need to have access to young, professional families. Certain doctors may need to determine how many of the population is elderly in order to have a successful practice.
2. Threshold: this is the minimum amount of individuals needed to support the service. Depending on the service will determine the threshold for the service to make a profit. Daycare providers need to have access to young, professional families. Certain doctors may need to determine how many of the population is elderly in order to have a successful practice.
There are several assumptions in the Central Place Theory, which have had some critiques by other geographers. Firstly, Christaller assumes there is a flat, isototropic plane with no physical barriers such as mountains. Secondly, there is uniform soil fertility, and thirdly, there is also a uniform transportation system in all directions. Finally, the Theory assumes that the population is evenly distributed.
These measures will help a business determine if opening a brand new location will be beneficial to its profitability. Geographers have adapted the gravity model for this purpose as well. The gravity model predicts that for a business to be profitable, it must find the optimal location which will be directly related to the number of individuals who will use this service in the area and inversely related to how far individual must be to travel to the service. In other words, how many people are in the area, and how many will not travel to the business due to distance.
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Related Links: Central Place Theory and Hierarchy of Settlements Quiz Economic Base AP Human Geography Quizzes AP Human Geography Notes |