Central Place Theory proposes that settlements are arranged in a hierarchy based on population size and the goods and services provided. It is based on assumptions about transport costs and an evenly distributed population. Key concepts include threshold population, or the minimum needed to support a certain good or service; market range, the maximum distance people will travel to obtain goods; a hierarchy of goods from higher to lower order settlements; and complementary regions that support each settlement.
2. Objectives
• To describe the basic foundation of Central
Place Theory;
• To explain the terminologies of population
threshold, market range, hierarchy of goods
and services and complimentary region;
• To explain how these concepts are used in
Central Place Theory
3. Central Place Theory
• A spatial theory in urban geography, used to
explain the locational pattern, by focusing on:
– Distribution pattern
– Size
– Number of cities in town
• Developed by Walter Christaller (1933)
4. Central Place Theory: Assumptions
humans will always
purchase goods from the
closest place that offers the
good
4
whenever demand for a
certain good is high, it will
be offered in close
proximity to the
population. When demand
drops, so too does the
availability of the good.
The market areas of the larger
towns and the smaller towns is
overlapping. All market areas
of the smaller towns is also
market areas for the larger
towns.Evenly distributed
population with equal
buying power of individual
The market area: to distribute
goods & services is hexagonal
in shape
transportation costs equal in
all directions and proportional
to distance
5. Terminologies & Concepts
Central Place Theory put emphasis on two concepts i.e.
threshold and range [of good & services]
Threshold population
Complimentary region
Hierarchy of goods and
services
Market Range
6. Threshold Population
• The minimum number of population needed to
support a type of service
• Ranges from 250 population for a small shop to
150,000 for a cinema
•
• If the number of population is below the
threshold number, the service may experience
loss and have to close down
•
• If the number population exceeds the threshold
number, the service may see profit.
7. • Example: A cinema that needs at least 500
audience per night will need at least 182,500
population IF the average of frequenting the
service is once a year. But if the average of
frequenting is 4 times a year, 45, 625 population
is enough.
• Population threshold is different from one service
to another. Example of Malaysian planning
standard: Small post office: 3000 – 15,000
population, surau: at least 200 Muslims.
• What is the importance of the concept of
population threshold?
8. Market Range
• The distance that an individual willing to
travel to obtain certain services in the central
place.
• The concept of economic distance is used –
taking the factors of cost, distance and the time
spent to travel
• Is divided into 3 ranges:
– Furthest from the actual distance (upper limit
/ ideal distance)
– The actual distance (real limit)
– The nearest distance (lower limit)
9. Market Range
• Market range is the outer limit where a
service can be obtained within a comfortable
range. After this limit, the population will be
attracted to another centre.
• An individual may be ready to travel further
distance to obtain better jeweleries, mobile
phones and clothing but for the case of salt,
sugar and cigarette, they will prefer to go to
the local store.
10. Jarak pemisah sebenar
bg belian barang R
X
Jarak terdekat (takat penduduk) bagi
belian brg R ke pusat B dan C
Jarak terjauh (ideal)
pembelian brg R ke C
Jarak terjauh (ideal)
pembelian brg R ke B
Distance of market range
Petempatan pusat C
Saiz: 10,000 org
Petempatan pusat B
Saiz: 10,000 org
11. Market range: the average
maximum distance people will
travel to purchase goods and
services
Threshold: the minimum
population that is required to
bring about the provision of
certain
good or services
12. Central Place Theory
• each central place
will have a circular
market area as
shown in C
• But it has either un-
served areas or over-
served areas.
• Christaller suggested
the hexagonal shape
13. hierarchy
• The different orders of settlements arrange
themselves in a hierarchy.
• Within a given area there will be fewer high order
cities and towns in relation to the lower order
villages and hamlets.
• theoretically the settlements will be equidistance
from each other.
• Generally speaking lower is the order, larger is the
number of settlements and higher the order,
greater is the area served
14. hierarchy
• Basically there 4 groups of homogeneous
services:
– Repairing physical objects
– Distribution and transportation of goods
– Processing and delivering information;
which includes organizations,
administrations & academic institutions
– Entertaining individual needs or many –
security and health services
15. hierarchy
Also refers to the quality of products and
services. Basically divided into 3 main orders:
– Higher order (car trading, emporium, mall,
electrical shops, HQ, stadiums and more)
– Medium order (clothing stores, furniture
stores, restaurant, post office)
– Lower order (grocery stores, food stalls,
barber shop, primary school, small mosque,
police stand small towns, rural centre)
16. Hierarchy of goods & services
• The determination of goods according to order is
arbitrary
• To develop an order, one should list down all the
available services in all smallest towns and large
towns in a state (country).
• If the hierarchy is sorted numerically, then there
will be goods or services numbered 1 – 99.
• Assuming 3 groups of order: item numbered 1 –
33 (higher order), 34 – 66 (medium order) & 67
– 99 (lower order)
17. HIERARCHY OF GOODS AND SERVICES
Status of
settlement
Order of Services
1 – 30 31 – 64 65 – 79 80 – 89 90 – 100
Metropolis
City
Town
Small town
Rural centre
/ /
/
/
/
/
/
/
/
/
/
/
/
/
/
CENTRAL PLACE THEORY
18. • A centre will offer goods and services to occupants
that surrounds it – market range with threshold
• Population from the complementary region will visit
the centre to market their products. Therefore, there
is 2 way communication between the centre with the
complementary region.
• However, the boundary to determine the
complementary region is somehow difficult to
determine as it may overlaps with the complementary
region of the nearest neighbor.
COMPLEMENTARY REGION
19. summary
• Central place theory – its assumptions
• 4 main concepts:
– Threshold population
– Market range
– Hierarchy of goods and services
– Complimentary region
