1. Models 2

2. Economics, Services, Urban

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

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

30. The Eastern European City

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

38. The Southeast Asian City

39. Ethnic Neighborhoods
European City
– eg. Muslim neighborhoods in Paris
Cities of the Periphery and Semiperiphery
– eg. Mumbai, India

40. Mumbai, India