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Some Economic Extensions of Central-place Theory Involving Profit Maximisation

Author

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  • Toshiharu Ishikawa

    (Faculty of Economics, Chuo University, Higashinakano 742-1, Tokyo 192-0393, Japan, ishiy@tamacc.chuo-u.ac.jp)

  • Masao Toda

    (College of International Studies, Chubu University, Kasugai, Aichi 487-8501, Japan, todam@isc.chubu.ac.jp)

Abstract

This paper attempts to extend central-place theory in terms of economic analysis, while at the same time refining and enhancing its applicability to urban systems. After reviewing the approach of Christaller, a central-place system is constructed, based on profit maximisation, and it is demonstrated that firms tend to concentrate at the largest central place. Next, the economic rationale for triangular market areas is discussed, and a central-place system is derived which involves the combination of triangular and hexagonal market areas. This model is used to explain the observed number of central places. Finally, the integration or separation of production and sales facilities is incorporated into the theory, as an attempt to explain the diversity of central places within an urban system.

Suggested Citation

  • Toshiharu Ishikawa & Masao Toda, 2000. "Some Economic Extensions of Central-place Theory Involving Profit Maximisation," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 481-495, March.
    • Handle: RePEc:sae:urbstu:v:37:y:2000:i:3:p:481-495
    DOI: 10.1080/0042098002078
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    References listed on IDEAS

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    Cited by:

    1. Toshiharu ISHIKAWA, 2009. "Determination of a Factory's Location in a Large Geographical Area by Using Chaotic Phenomena and Retailers' Location Networks," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 2(3(7)), pages 141-150.
    2. Toshiharu Ishikawa, 2011. "Firm's location choices by referring to chaotic phenomenon and the central place system," ERSA conference papers ersa10p102, European Regional Science Association.

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