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Introduction to Central Place theory

Central place theory Introductory Image

Central Place Theory  is an urban geographical theory that seeks to explain the size, number, and distribution of settlements and their service in the urban system. Central Place theory was introduced by German geographer Walter Christaller in 1933 who studied the settlement patterns in Southern Germany. It is a fundamental concept in urban geography and regional planning. Central place theory assumes that settlements function as central places in a hierarchical network. These places provide services to their surrounding areas, with larger central places offering higher order service and the smaller places offering basic service.

Central place theory assumes that human settlements are organized in a regular predictable pattern, across the landscape. This theory was primarily designed to explain the distribution of cities and towns and the flow of goods and services between them.

Assumption of Central Place Theory

  1. Isotropic Surface: The surface was uniform and flat, meaning that there were no natural barriers such as mountains or rivers to disturb settlement patterns. This assumption allowed for the theoretical development of a regular settlement distribution.
  2. Equal Transportation Costs: Transportation costs are uniform across the entire region, meaning that the cost of transporting goods and services to a central place is the same within a region regardless of the distance(near or far).
  3. Rational Behavior of Consumers and Producers: Consumers aim to minimize cost by shopping near the central place, while retailers seek to maximize profits by strategically locating in areas with sufficient threshold population.
  4. Fixed Threshold and Range of Services: Settlement has a certain threshold, the minimal population required to support specific services or goods and the maximum distance consumers are willing to travel to access a particular service or goods.
  5. Perfect Competition: All central places operate under the same conditions and offer similar goods and services at competitive prices.
  6. Central Places Offer Different Types of Goods and Services: Larger cities offer higher-order services such as universities, hospitals, and entertainment centers while smaller cities offer lower-order services i.e., groceries and basic healthcare.

Basic Structure of Central Place Theory

  1. Central place theory suggests that settlements are arranged in a hierarchical pattern meaning, that larger central places serve more people and offer more specialized services. The hierarchical structures are:
  2. Low-order settlements: These are small towns or villages or markets that provide basic services and goods i.e. food, clothing, and groceries. They have a small threshold population and serve the surroundings.
  3. Mid-order settlements: Larger towns offer more specialized services such as schools, small hospitals, etc. They serve a larger population and serve as a regional hub for surrounding smaller settlements.
  4. High-Order Settlement: Large cities that offer specialized services like universities, major hospitals, theaters, and administrative services. They serve large areas and people travel a long distance to access these services.

Key Concept of Central Place Theory

  • Centrality: This refers to the importance of settlement within the urban hierarchy. A settlement with high centrality offers a wide range of goods and services attracting consumers from a larger area.
  • Threshold: The minimum population size required to support a service or business. Higher-order services such as specialized medical care require a larger threshold population than lower-order services such as grocery stores.
  • Range: The maximum distance consumers are willing to travel to purchase goods and services. Range Varies as people are willing to travel further distances for higher-order services and travel less for lower-order services and goods.
  • Complimentary Area: it is the hinterland served by the central place.
  • Central place: The settlement serves other settlements of lower hierarchy meaning, Higher hierarchy settlement serves lower hierarchy settlement).

Functional Arrangement of Central Place Theory

  1. Optimal Number of Central Places: The number of central places must be exactly right to avoid inefficiencies. Too many central places will cause redundancy and competition among central places while too few will leave the areas to be underserved.
  2. Optimal Hierarchical Levels: The number of hierarchical levels should balance service provision. Too many will dilute service concentration at higher levels while too few will overburden higher-order central places.
  3. Hexagonal Complementary Areas: The complementary area of a centered place should be hexagonal for efficiency because it is closest to a circle which ensures equidistance service coverage and unlike circles or squares hexagonal overlaps perfectly with no gaps.
  4. Nesting Pattern in Hierarchies: Lower hierarchy settlements best within the complementary areas of higher hierarchy settlements ensuring accessibility to specialized service from higher levels and creating seamless network coverage in all regions. (Smaller settlements are integrated into the system of larger ones, forming a balanced structure).

Principle of Arrangement of Central Places (K-Value)

Central place theory explains how settlements of different sizes are organized especially to solve surrounding populations efficiently. It introduces 3 guiding principles Marketing principle(k=3), transportation/traffic principle (k=4), and administrative principle(k=7) That dictate how central places like towns or cities function in a hierarchy to provide services and goods.

  1. Marketing principle(k=3): Higher order settlement solves 3 lower order settlements including itself. Settlements are located at the corner of the hexagon with the central city at the center. Hierarchy of settlements is 3,9,81….
  2. Transportation/Traffic principal(k=4): A higher order settlement serves 4 lower order settlements (the hierarchy 1; City, 2; Town, 3: Villages, 4; Hamlets.). Settlements are located at the midpoint of hexagonal sites ensuring more direct routes. Hierarchy of settlements 1,4,16,64… the hierarchy 1; City, 2; Town, 3: Villages, 4; Hamlets.
  3. Administrative principle(k=7): A higher order settlement serves 7 lower order settlements. Central places are arranged to facilitate administrative control, with the higher-order settlement fully dominating its surrounding lower-order settlement. All lower order settlements are entirely within the hexagon of the higher order center preventing administrative Gap. The hierarchy of settlement is 1,7,49,343…

Results of Central Place Theory

Central Place Theory outlines patterns of settlements and services in a region based on its assumptions of spatial uniformity and hierarchical organization.

Large Settlements Are Few
Higher-order settlements (larger towns or cities) are fewer compared to lower-order settlements (villages or small towns).

  1. Distance Between Large Settlements
    Larger settlements are farther apart; as the size of a settlement increases, the distance between them also increases to maintain economic efficiency.
  2. Range and Number of Functions Increase with Size
    Larger settlements offer a greater variety of goods and services.
  3. Higher-order services are Concentrated in Larger Settlements
    1. With the increase in Settlement size, the proportion of high-level services also increases.

Criticisms of Central Place Theory

 

Despite its influence in urban and regional planning, this theory faces many criticisms.

  1. Variation in Production Costs: Theory assumes uniform production cost which is not realistic in the real world.
  2. Unequal Transportation Costs: The theory assumes transportation costs are uniform in all directions. But they are not due to natural barriers such as rivers, mountains, or oceans.
  3. Uneven Distribution of Rural Markets: The theory assumes that rural markets (households) are evenly distributed rarely holds true because population density and settlement patterns are significantly based on the geography and history of the place.
  4. Role of Non-Economic Factors: Cultural, Political, and leadership dynamics play a key role in the settlement Patterns, and they cannot be modeled only through economic principles.
  5. Market Competition and Imperfections: Competitive factors like freight delivery without bearing transportation cost by the seller (Freight absorption) or freight delivery charge that does not even occur (phantom freight) lead to deviation from the theory.
  6. Hexagonal Pattern: The hexagonal Pattern has been criticized because he neglected the linear pattern of settlement along the rivers, roads, and rails.

One of the critiques August Losch modified Christaller’s model of central place theory thinking that it was too rigid.

August Losch Model

August Losch was a German economist. He modified Christaller’s Central Place theory in 1954 and the modified theory is called August Losch Model.

Assumptions of August Losch Model

  1. Isotropic Plain: The land is flat with no barriers to movement.
  2. Homogeneous Preferences: People prefer buying goods from the nearest source.
  3. Hexagonal Hinterlands: Settlements have fixed hexagonal market areas, and the population is static.
    Shipping Costs: Consumers bear the transportation costs.
  4. Rational and Economical Behavior: People make logical decisions to minimize costs.

Key Modifications in August Losch Model

  • Flexibility in K-Values:
    Unlike Christaller’s fixed K-values (3, 4, 7), Lösch allowed them to vary freely.
    Different goods and services have different spheres of influence, reflecting varying demand patterns.
  • 150 Goods and Services:
  • Losch identified 150 goods and services which has a unique market range and hexagonal coverage.
  • Richer goods (High-demand goods) were demanded more along highways, while basic goods (Low-demand goods) had broader distribution.
  • Overlay and Rotation of Hexagons:
  • Hexagons for different goods were superimposed and rotated, showing overlapping markets  Creating a circular landscape that moved away from the rigid hexagonal patterns of Christaller’s Central Place Theory.
  • Rich and Poor Settlements:
  • High-demand goods (rich settlements) clustered near highways.
  • Poorer settlements filled the spaces between these clusters, creating a realistic pattern of economic disparity.
  • Nesting Pattern for 150 Functions:
  • Lösch proposed a hierarchy of interconnected settlements for various goods and services.
  • Transportation lines radiated from central places, improving connectivity (e.g., Delhi Metro connecting suburban and urban hubs).
  • Dense and Congested Patterns:
  • The model reflected densely populated areas, showing real-world settlement complexity.

Examples of August Losch Model

  1. Rich Settlements: Metropolitan hubs like New York or Tokyo align with Lösch’s rich clusters which offer high-order goods and services near major transportation networks.
  2. Poor Settlements: Rural areas between these hubs often represent the poorer settlements, with limited access to goods and services.

Merits of Losch’s Model

Improved Practicality: Losch removed the rigid constraints of Christaller’s model, allowing multiple K-values and more realistic settlement patterns.

  1. Comprehensive Functionality:
    • It accounts for local variations and combines multiple factors (e.g., market demand, transport networks).
  2. Realistic Settlements: The circular and clustered landscapes represent real-world patterns of urbanization and economic disparity.

Conclusion of Losch’s Model

August Losch’s model upgraded the Central Place Theory by incorporating economic realities, transportation patterns, and demand variability. While Christaller’s theory provided a foundational framework, Losch’s modifications made it more applicable to the complexities of modern economies and settlement patterns, particularly in developing regions. This adaptability makes it valuable for understanding how settlements grow, interact, and integrate functionally in today’s world.

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