Losch Theory
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Transcript of Losch Theory
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LOSCH THEORY
SAFOORA KH K.V.ABHISHEK
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An Introduction to Central Space Theory
The theory was originally published in 1933 by a
German geographer Walter Christaller who studied the
settlement patterns in southern Germany.
Assumptions:
Christaller made a number of assumptions such as:
All areas have
• an isotropic (all flat) surface
• an evenly distributed population
• evenly distributed resources
• similar purchasing power of all consumers and consumers will patronize nearest
market
• transportation costs equal in all directions and proportional to distance
• no excess profits (Perfect competition)
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Details of the theory
The theory consists of two basic concepts:
• threshold
-- the minimum population that is required to bring about the provision of certain
good or services
• range of good or services
-- the average maximum distance people will travel to purchase goods and
services.
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Details of the theory
As transport is equally easy in all
direction, each central place will
have a circular market area as
shown in C in the following diagram:
However, circular shape of the
market areas results in either un-
served areas or over-served areas.
To solve this problem, Christaller
suggested the hexagonal shape
of the markets as shown in D in the
above diagram.
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Criticism:
1. Applicable only to service sector which is only a part of the total economy.
2. The hierarchy system would be distorted by the location of primary or manufacturing
industry.
3. The assumption that the consumer will act rationally and patronize the nearest center is
not correct.
4. Most criticized for its static and descriptive nature, as it deals with its relationship
between centers and their hinterlands only at one point of time, but fails to take into
account
the evolutionary process of spatial structure i.e. how the structure has evolved and might
change in future.
Modifications in the Central Place Theory:
August Losch model postulated that there is one superior centre where all goods
are produced. The size of the centers increases with distance form the central place and
those small centers tend to be located about half way in between larger ones
Losch considered that the size of the hexagon not only in relation to a geographical centre,
but also, in relation to the goods produced. Thus a particular centre may have several
hexagonal markets for its different products as transport cost is a function of distance
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THREE BASIC STEPS IN LOSCH’S ANALYSIS WERE AS FOLLOWS
1. TO FIND THE OPTIMAL DENSITY OF URBAN PLACES (OF ALL SIZES)IN A GIVEN
AREA.
2. TO SHOW THAT THIS SYSTEM OF SETTLEMENTS,REPRESENTED BY POINTS,FORMS
A PLACE LATICE
3. TO SHOW THAT DEMAND IS MAXIMIZED AT EACH PLACE IF THE SURROUNDING
MARKET AREAS ARE HEXAGONAL.
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To explain his theory August Losch made the following assumptions.
1) An isotropic plane – a homogeneous land surface with respect to population distribution,
standard of living, demand and production.
2) In that plane, transportation costs are proportional to the distance.
3) In that situation, the shape and size of the market area will depend upon the price of the
product and the rate of transportation costs.
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The selection of hexagonal network of market based on a 60 degree (sixfold)
Plana latice is essentialy the function of space filling requirements of the central place
theory
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• Each function form its
own latice of market
superimposed on latice
of other function
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Nesting of tributary areas
K=3
K=1+1/2(0)+1/3(6)=3 K=4
K=1+1/2(6)+1/3(0)=4
K=7
K=7+1/2(0)+1/3(0)=7
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Distance relation in a christaller k=3 network 2 2 2
BD =AD +AB -2AD.Abcosine<DAB
BD=√3.AB
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Distance relations in loschian system
AC=x
AD=x √3
AB=3X
A
C
D B
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Distance relations in a loschian system
• In contrast to christaller who discussed mainly the network of degree 3 ,losch
argue in more general terms.
• The above figure in which there is an urban place A serving an equivalent of
9 customers including itself
• If we considerd the basic distance of original settlement to be x again then
AB= 3x
• Which in terms represented as x √n
where n is the total number of equivalent customers served by a place
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Regional Level K=3 K=4 K=7
1 x√31 x√41
x√71
2 x√32
x√42
x√72
3 x√33
x√43
x√73
4 x√34
x√44
x√74
5 x√35
x√45
x√75
6 x√36
x√46
x√76
7 x√37
x√47
x√77
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The ten smallest economic areas Losch’s
scheme.The sectors containing many
towns are hatched. Alternative regional
centers are in paranthesis.Simple points
represent original settlements.Those
enclosed in circles are centers of
market areas of sizes indicated by
figures.
Ref: A.Losch, The Economics of Location
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He further argued that the best
location would be that which would
command, the largest market area,
since this would bring in the highest
sales revenue. Point of largest sales
should be the correct location; place of
greatest profit is the right place.
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References:
1.Cities,Space & Behavior: The Elements of Urban Geography: Leslie J.King & Reginald
G.Colledge
2.Location & Space Economy :Walter Isard
3.Internet