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Lecture 4

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Stephen Swales

Lecture 4  Distance Decay o Further away from a location the less the interactions with that location  The concept of range o Range: the point at which o There will be a point where interaction will fall to zero, because its costly to time and money  Intervening opportunities, migration: retail interceptor rings Identifying Service Areas (Areas of Trade) Boundaries between competitors – basic principles o Line of Indifference – target audience that is in the middle, have equal distance from both locations, so they will go either way. (aka. Thiesson Polygon- Dead Parent concept) (Only Factor is Distance) o Gravity Concept- the lone if indifference will move towards the smaller centre because people choose to go to the larger centre because they may get better quality goods. (Distance and Size) o Huff Model allows for probability and allows for overlapping, (distance and size in a probability context) o Converse Breakpoint the relative attraction, the large of the destination will go to the more attractive Diffusion  Relocation diffusion – migration  Contagious diffusion – AIDS, SARS, ideas  Hierarchical diffusion – fashion, innovation, seen in technology  In retail o Organic growth (contagious)- we’re in this location we spread from here, open new stores close to the original location o Acquisitions and Takeovers – Wal-Mart took over a chain that was in business WILKO o http://blog.kiwitobes,com/?p=51 The Spatial Demand Curve  The higher the price the lower the purchases  Transportation cost increase with distance  The further the distance the greater the cost to the household (distance vs. price tot household)  Greater distance, the lower the quantity purchased (distance (range) vs. quantity purchased to household) Distance decay curves: convenience and shopping goods Convenience Goods Shopping goods: 1. Steep curve (spatial monopoly) 1. Shallow curve (product monopoly) 2. Identical, interchangeable 2. Distinctive product 3. Low value/bulk 3. Higher value/bulk 4. Frequently purchased 4. Infrequently purchased 5. Examples: milk, bread, 5. Examples: Clothing, furniture , cigarettes, gasoline jewelry Intra-urban Spatial Hierarchies  Schools/Education  Medical Services  Commercial /Retail Activities (Convenient Stores )  The spatial patterns of commercial activities within cities show a hierarchal pattern, at the bottom of the hierarchy we can observe a large number of small convenience stores which are closely spaced and sell basic (low order) goods (ex. Bread, milk and eggs) to customers who travel to the store quite frequently ove
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