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Models 2
Economics, Services, Urban
Location Theory
• Location Theory – predicting
  where a business will or
  should be located.
• Location of an industry is
  dependent on economic,
  political, cultural features as
  well as whim.
• Location Theory Considers:
   – Variable costs-energy,
     transportation costs & labor
     costs
   – Friction of distance-increasing
     distance =increased time &
     cost
Location Models
Weber’s Model-The Least Cost Theory
Alfred Weber, (1868-1958) a German economists, published Theory of
   the Location of Industries in 1909. His theory was the industrial
   equivalent of the Von Thunen Model.
Manufacturing plants will locate where costs are the least.
Three Categories of Costs:
Transportation-the most important cost-usually the best site is where
   cost to transport raw material and finished product is the lowest
Labor-high labor costs reduce profit-location where there is a supply
  of cheap, non-union labor may offset transportation costs
Agglomeration-when a group of industries cluster for mutual benefit-
  shared services, facilities, etc.-costs can be lower
Deglomeration-when excessive agglomeration offsets advantage-
  eastern crowded cities
Weber's Location Triangle

•


•   Alfred Weber's work (1909) is considered to have established the foundations of modern
    location theories. One of his core assumption is that firms will chose a location in view to
    minimize their costs. This involves a set of simplifications, namely that location takes place in
    an isolated region (no external influences) composed of one market, that space is isotropic
    (no variations in transport costs except a simple function of distance) and that markets are
    located in a specific number of centers. Those conditions are quite similar to those behind
    Von Thunen's agricultural land use model elaborated almost one hundred years earlier. The
    model also assumes perfect competition, implying a high number of firms and
    customers, small firm sizes (to prevent disruptions created by monopolies and oligopolies)
    and a perfect knowledge of market conditions, both for the buyers and suppliers. Several
    natural resources such are water are ubiquitous (available everywhere) while many
    production inputs such as labor, fuel and minerals are available at specific locations.
    According to Weber, three main factors influence industrial location; transport costs, labor
    costs and agglomeration economies. Location thus imply an optimal consideration of these
    factors.
Weber's Location Triangle
•

•   Solving Weber's location model often implies three stages; finding the least
    transport cost location and adjusting this location to consider labor costs and
    agglomeration economies. Transportation is the most important element of the
    model since other factors are considered to only have an adjustment effect. To
    solve this problem, Weber uses the location triangle within which the optimal is
    located. The above figure illustrates the issue of minimizing transport costs.
    Considering a product of w(M) tons to be sold at market M, w(S1) and w(S2) tons
    of materials coming respectively from S1 and S2 are necessary. The problem
    resides in finding an optimal factory location P located at the respective distances
    of d(M), d(S1) and d(S2). Several methodologies can be used to solve this problem
    such as drawing an analogy to a system of weights and pulleys (Varignon's
    solution) or using trigonometry. Another way preferred among geographers,
    particularly with GIS, is to use cost surfaces which are overlaid.
Hotelling’s Model (Linear market)
• Hotelling’s Model-Harold
  Hotelling (1895-1973) this
  economist modified Weber’s
  theory by saying the location of
  an industry cannot be
  understood with out reference to
  other similar industries-called
  Locational Interdependence
• Losch’s Model-August Losch said
  that manufacturing plants choose
  locations where they can
  maximize profit. Theory: Zone of
  Profitability
Losch’s Model-Zone of Profitability
Rank-Size Rule
• The larger the city-the fewer there are-
• Model indicates that the population of a city or town in
  inversely proportional (the fraction) to its rank in the
  hierarchy
• If largest city is 12 million then 2nd largest is 6 m. (1/2) 3rd
  largest is 4 m. (2/3) 4th largest is 3 m. or (3/4) 10th largest
  is 1.2 million

Rank-Size Rule does
Not apply to
primate
Cities such as Paris,
Mexico City and so
forth
Primate Cities
• Gideon Sjoberg was also
  the first to study the
  primate city.
• A nation’s leading city in
  size that serves as an
  expression of national
  culture.
   – Not necessarily large
   – Dominated by religious and
     govt. buildings
   – Spacious with wealth near
     the center
   – Less privileged near the
     edge or outside wall
Central Place Theory
• Central Places-hierarchy is based on population, function
  & services.
• Economic reach-how functions & services attract
  customers from areas beyond the urban limits.
• Centrality-the central position & ability to attract
  customers to a village, town or city.
• Range of Sale-the distance people are willing to travel to
  buy goods or services
Central Place Theory
• Christaller tried to
  determine the degree of
  centrality of various places.
• He created a model to
  show how central places in
  the urban hierarchy are
  spatially distributed.
• He assumed:
   – No physical barriers
   – Soil and surface of equal
     quality
   – Even distribution of
     population
   – Uniform transportation
     system
Hexagonal Hinterlands



                        C = city
                        T = town
                        V = village
                        H = hamlet
Hexagonal Hinterlands
• Christaller’s urban model
  showed that each central
  place had a
  complementary
  hinterland.
• The hexagonal model
  solves the overlap
  problem that circles
  would have.
• Nesting arrangement-
  region within a region-
  each larger
  complementary region is
  centered on a higher
  order urban place
Modeling the North American City
• Concentric zone model (Ernest Burgess)
• Sector model (Homer Hoyt)
• Multiple Nuclei Model
    (Chauncy Harris and Edward Ullman)
Classic Models of Urban Structure
• Ernest Burgess-1925
  Concentric Zone Model
  based on studies of
  Chicago.
• CBD-financial, retail,
  theater, museums etc.
• Transition to residential
  with deterioration-some
  light industry
• Blue collar labor housing
• Middle class residential
• Suburban ring
Functional
                             Zonation
                           The division of the
                             city into certain
                             regions (zones) for
                             certain purposes
                             (functions).


Cairo, Egypt
Central city (above)
Housing projects (right)
Classic Models of Urban Structure
• Homer Hoyt-1939 Sector
  Model based on studies
  of 142 US cities.
• Pie-shaped wedges
  created by Hoyt
  compensated for the
  drawbacks of the Ring
  Model
• Low Rent areas & High
  Rent areas could extend
  to the outer edge
• Transportation and
  industrial zones
  accounted for the
  sectors
• Chauncy Harris & Edward Ullman Multiple Nuclei Sector
  Model 1945 showed that CBD is not the sole force in
  creating land-use patterns.
• They said that Concentric Rings & Pie-shaped models had
  drawbacks as CBDs were losing dominance
• Subsidiary and competing CBDs developed (Edge Cities)
• Suburbanization accelerated the change with shopping
  malls and mass transit
Post WWII-rapid expansion of
cities and suburbs led to Edge
Cities with their own CBD
The Canadian City
• Less dispersed with higher
  pop. densities than US
  cities
• More multi-family
  dwellings and less disparity
  in wealth
• Suburbs not as large or as
  affluent as in the US
• Central city has more
  middle and higher income
  pop. & stronger tax base
• Better services & public
  transportation systems
Calgary, A
                 lberta
                skyline




 Toronto-
 Canada’s
largest city
The European City
• Western European cities are more compact than Canadian
  cities
• Same size in pop. As US cities, but smaller in land area
• European govt. are proactive in maintaining healthy CBDs
• No sprawl-suburbs are too far out to compete with CBD
• Greenbelts preserve the central city from close suburban
  development
• Very high fuel costs discourage suburban development
• Central cities are clogged with cars, but mass transit, bikes,
  and walking are relied on for transportation
• Zoning rules are strictly enforced and highway and beltway
  construction lags.
The European City
• London-6.4 m., Paris 10.2
  m., Rome, Berlin, Madrid
  and Athens are megacities
  by world standards
• These are historic cities
  not impacted by the
  Industrial Revolution
• British Midlands &
  German Ruhr valley cities
  are very different-smaller
  & heavily industrialized-
  destroyed in WWII
• Paris, Athens and Lisbon
  are Primate cities
The European City-Greenbelts
• London’s Central city
  is the same size it
  was in 1960
• Greenbelts were est.
  to counteract ill
  effects of Ind. Rev.
• Open countryside
  over 20 miles wide
  has scattered towns,
  but no extensive
  suburban areas
• Many urban parks
  maintain a green
  areas within the city
During the second half of
the 20th century…

Nature of manufacturing
changed and locations
changed, too. Many
factories have been
abandoned, creating “rust
belts” out of once-thriving
industrial districts.

  Duisburg, Germany
The Eastern European City
• Eastern European &
  Russian cities were turned
  into microdistricts by
  communist planning
• Old primate and historical
  cities were ignored
• Huge dominant square &
  wide radiating avenues
  fronted by huge
  apartment complexes
  with
  factories, schools, shops
  & so on.
The Eastern European City
• Large 7 to 11 story
  complexes were rapidly
  built of shoddy material
  with no decoration-ugly
  and depressing
• Moscow’s growing pop.
  (11 m.) lives in
  microdistricts that radiate
  out from Red Square.
• St. Petersburg was rebuilt
  in the ugly socialist style
  after heavy damage in
  World War II
The Eastern European City
Modeling the Cities of the Global Periphery
           and Semiperiphery

• Latin American City
  (Griffin-Ford model)

• African City (de Blij model)

• Southeast Asian City (McGee model)
Making Cities in the Global Periphery and
               Semiperiphery
- sharp contrast
between rich
and poor
- Often lack
zoning laws or
enforcement of
zoning laws
The Ibero-American City
• Latin American cities are
  growing rapidly-1950=
  41% urban, 1997 74%
  urban
• CBD dominates the
  center with 2 main
  divisions-traditional
  market and modern high
  rises
• A commercial spine and
  axis of business is
  surrounded by elite
  residential housing
                              Griffin-Ford model
The Ibero-American City
• The spine is an extension
  of the CBD with offices,
  shops, high class housing,
  restaurants, theaters, &
  parks
• Zone of Maturity-Middle
  class housing 2nd best
• Zone of In Situ Accretion-
  high pop. Density of
  modest housing
• Periphery-Periferico-high
  density shanty towns of
  extreme poverty and no
  services
The African City
• African cities often have 3
  CBDs=Colonial, Traditional
  and Periodic Market Zone
• Sub-Saharan Africa is the
  least urbanized area of the
  world, but the most rapidly
  urbanizing
• No large cities to match
  Cairo-
  Kinshasa, Nairobi, Harare,
  Dakar, Abidjan were
  established by Europeans

                                   de Blij model
The African City
• No large cities to match Cairo-Kinshasa, Nairobi, Harare,
  Dakar, Abidjan were established by Europeans
• South African cities-Johannesburg, Cape Town & Durbin are
  western cities with elements of European and American
  models-high rise CBDs and sprawling suburbs
The Southeast Asian City
• SE Asia-rapid growth of
  population & cities-1950-
  15% urban, 1990s-29%
  urban
• Most growth in coastal
  cities like Ho Chi Minh City
  (Saigon)
• Old colonial port zone
  surrounds the commercial
  district
• Unlike Western cities-no
  formal business zone, but
  separate clusters              McGee model
The Southeast Asian City
Ethnic Neighborhoods
European City
    – eg. Muslim neighborhoods in Paris
Cities of the Periphery and Semiperiphery
    – eg. Mumbai, India
Mumbai, India

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Models 2

  • 3. Location Theory • Location Theory – predicting where a business will or should be located. • Location of an industry is dependent on economic, political, cultural features as well as whim. • Location Theory Considers: – Variable costs-energy, transportation costs & labor costs – Friction of distance-increasing distance =increased time & cost
  • 4. Location Models Weber’s Model-The Least Cost Theory Alfred Weber, (1868-1958) a German economists, published Theory of the Location of Industries in 1909. His theory was the industrial equivalent of the Von Thunen Model. Manufacturing plants will locate where costs are the least. Three Categories of Costs: Transportation-the most important cost-usually the best site is where cost to transport raw material and finished product is the lowest Labor-high labor costs reduce profit-location where there is a supply of cheap, non-union labor may offset transportation costs Agglomeration-when a group of industries cluster for mutual benefit- shared services, facilities, etc.-costs can be lower Deglomeration-when excessive agglomeration offsets advantage- eastern crowded cities
  • 5. Weber's Location Triangle • • Alfred Weber's work (1909) is considered to have established the foundations of modern location theories. One of his core assumption is that firms will chose a location in view to minimize their costs. This involves a set of simplifications, namely that location takes place in an isolated region (no external influences) composed of one market, that space is isotropic (no variations in transport costs except a simple function of distance) and that markets are located in a specific number of centers. Those conditions are quite similar to those behind Von Thunen's agricultural land use model elaborated almost one hundred years earlier. The model also assumes perfect competition, implying a high number of firms and customers, small firm sizes (to prevent disruptions created by monopolies and oligopolies) and a perfect knowledge of market conditions, both for the buyers and suppliers. Several natural resources such are water are ubiquitous (available everywhere) while many production inputs such as labor, fuel and minerals are available at specific locations. According to Weber, three main factors influence industrial location; transport costs, labor costs and agglomeration economies. Location thus imply an optimal consideration of these factors.
  • 6. Weber's Location Triangle • • Solving Weber's location model often implies three stages; finding the least transport cost location and adjusting this location to consider labor costs and agglomeration economies. Transportation is the most important element of the model since other factors are considered to only have an adjustment effect. To solve this problem, Weber uses the location triangle within which the optimal is located. The above figure illustrates the issue of minimizing transport costs. Considering a product of w(M) tons to be sold at market M, w(S1) and w(S2) tons of materials coming respectively from S1 and S2 are necessary. The problem resides in finding an optimal factory location P located at the respective distances of d(M), d(S1) and d(S2). Several methodologies can be used to solve this problem such as drawing an analogy to a system of weights and pulleys (Varignon's solution) or using trigonometry. Another way preferred among geographers, particularly with GIS, is to use cost surfaces which are overlaid.
  • 7. Hotelling’s Model (Linear market) • Hotelling’s Model-Harold Hotelling (1895-1973) this economist modified Weber’s theory by saying the location of an industry cannot be understood with out reference to other similar industries-called Locational Interdependence • Losch’s Model-August Losch said that manufacturing plants choose locations where they can maximize profit. Theory: Zone of Profitability
  • 8. Losch’s Model-Zone of Profitability
  • 9. Rank-Size Rule • The larger the city-the fewer there are- • Model indicates that the population of a city or town in inversely proportional (the fraction) to its rank in the hierarchy • If largest city is 12 million then 2nd largest is 6 m. (1/2) 3rd largest is 4 m. (2/3) 4th largest is 3 m. or (3/4) 10th largest is 1.2 million Rank-Size Rule does Not apply to primate Cities such as Paris, Mexico City and so forth
  • 10. Primate Cities • Gideon Sjoberg was also the first to study the primate city. • A nation’s leading city in size that serves as an expression of national culture. – Not necessarily large – Dominated by religious and govt. buildings – Spacious with wealth near the center – Less privileged near the edge or outside wall
  • 11. Central Place Theory • Central Places-hierarchy is based on population, function & services. • Economic reach-how functions & services attract customers from areas beyond the urban limits. • Centrality-the central position & ability to attract customers to a village, town or city. • Range of Sale-the distance people are willing to travel to buy goods or services
  • 12. Central Place Theory • Christaller tried to determine the degree of centrality of various places. • He created a model to show how central places in the urban hierarchy are spatially distributed. • He assumed: – No physical barriers – Soil and surface of equal quality – Even distribution of population – Uniform transportation system
  • 13. Hexagonal Hinterlands C = city T = town V = village H = hamlet
  • 14. Hexagonal Hinterlands • Christaller’s urban model showed that each central place had a complementary hinterland. • The hexagonal model solves the overlap problem that circles would have. • Nesting arrangement- region within a region- each larger complementary region is centered on a higher order urban place
  • 15. Modeling the North American City • Concentric zone model (Ernest Burgess) • Sector model (Homer Hoyt) • Multiple Nuclei Model (Chauncy Harris and Edward Ullman)
  • 16. Classic Models of Urban Structure • Ernest Burgess-1925 Concentric Zone Model based on studies of Chicago. • CBD-financial, retail, theater, museums etc. • Transition to residential with deterioration-some light industry • Blue collar labor housing • Middle class residential • Suburban ring
  • 17. Functional Zonation The division of the city into certain regions (zones) for certain purposes (functions). Cairo, Egypt Central city (above) Housing projects (right)
  • 18. Classic Models of Urban Structure • Homer Hoyt-1939 Sector Model based on studies of 142 US cities. • Pie-shaped wedges created by Hoyt compensated for the drawbacks of the Ring Model • Low Rent areas & High Rent areas could extend to the outer edge • Transportation and industrial zones accounted for the sectors
  • 19. • Chauncy Harris & Edward Ullman Multiple Nuclei Sector Model 1945 showed that CBD is not the sole force in creating land-use patterns. • They said that Concentric Rings & Pie-shaped models had drawbacks as CBDs were losing dominance • Subsidiary and competing CBDs developed (Edge Cities) • Suburbanization accelerated the change with shopping malls and mass transit
  • 20. Post WWII-rapid expansion of cities and suburbs led to Edge Cities with their own CBD
  • 21. The Canadian City • Less dispersed with higher pop. densities than US cities • More multi-family dwellings and less disparity in wealth • Suburbs not as large or as affluent as in the US • Central city has more middle and higher income pop. & stronger tax base • Better services & public transportation systems
  • 22. Calgary, A lberta skyline Toronto- Canada’s largest city
  • 23. The European City • Western European cities are more compact than Canadian cities • Same size in pop. As US cities, but smaller in land area • European govt. are proactive in maintaining healthy CBDs • No sprawl-suburbs are too far out to compete with CBD • Greenbelts preserve the central city from close suburban development • Very high fuel costs discourage suburban development • Central cities are clogged with cars, but mass transit, bikes, and walking are relied on for transportation • Zoning rules are strictly enforced and highway and beltway construction lags.
  • 24. The European City • London-6.4 m., Paris 10.2 m., Rome, Berlin, Madrid and Athens are megacities by world standards • These are historic cities not impacted by the Industrial Revolution • British Midlands & German Ruhr valley cities are very different-smaller & heavily industrialized- destroyed in WWII • Paris, Athens and Lisbon are Primate cities
  • 25. The European City-Greenbelts • London’s Central city is the same size it was in 1960 • Greenbelts were est. to counteract ill effects of Ind. Rev. • Open countryside over 20 miles wide has scattered towns, but no extensive suburban areas • Many urban parks maintain a green areas within the city
  • 26. During the second half of the 20th century… Nature of manufacturing changed and locations changed, too. Many factories have been abandoned, creating “rust belts” out of once-thriving industrial districts. Duisburg, Germany
  • 27.
  • 28. The Eastern European City • Eastern European & Russian cities were turned into microdistricts by communist planning • Old primate and historical cities were ignored • Huge dominant square & wide radiating avenues fronted by huge apartment complexes with factories, schools, shops & so on.
  • 29. The Eastern European City • Large 7 to 11 story complexes were rapidly built of shoddy material with no decoration-ugly and depressing • Moscow’s growing pop. (11 m.) lives in microdistricts that radiate out from Red Square. • St. Petersburg was rebuilt in the ugly socialist style after heavy damage in World War II
  • 31. Modeling the Cities of the Global Periphery and Semiperiphery • Latin American City (Griffin-Ford model) • African City (de Blij model) • Southeast Asian City (McGee model)
  • 32. Making Cities in the Global Periphery and Semiperiphery - sharp contrast between rich and poor - Often lack zoning laws or enforcement of zoning laws
  • 33. The Ibero-American City • Latin American cities are growing rapidly-1950= 41% urban, 1997 74% urban • CBD dominates the center with 2 main divisions-traditional market and modern high rises • A commercial spine and axis of business is surrounded by elite residential housing Griffin-Ford model
  • 34. The Ibero-American City • The spine is an extension of the CBD with offices, shops, high class housing, restaurants, theaters, & parks • Zone of Maturity-Middle class housing 2nd best • Zone of In Situ Accretion- high pop. Density of modest housing • Periphery-Periferico-high density shanty towns of extreme poverty and no services
  • 35. The African City • African cities often have 3 CBDs=Colonial, Traditional and Periodic Market Zone • Sub-Saharan Africa is the least urbanized area of the world, but the most rapidly urbanizing • No large cities to match Cairo- Kinshasa, Nairobi, Harare, Dakar, Abidjan were established by Europeans de Blij model
  • 36. The African City • No large cities to match Cairo-Kinshasa, Nairobi, Harare, Dakar, Abidjan were established by Europeans • South African cities-Johannesburg, Cape Town & Durbin are western cities with elements of European and American models-high rise CBDs and sprawling suburbs
  • 37. The Southeast Asian City • SE Asia-rapid growth of population & cities-1950- 15% urban, 1990s-29% urban • Most growth in coastal cities like Ho Chi Minh City (Saigon) • Old colonial port zone surrounds the commercial district • Unlike Western cities-no formal business zone, but separate clusters McGee model
  • 39. Ethnic Neighborhoods European City – eg. Muslim neighborhoods in Paris Cities of the Periphery and Semiperiphery – eg. Mumbai, India