GGR252H1 Lecture Notes - Lecture 8: Postal Codes In Canada, Distance Decay
Document Summary
The converse breakpoint method make it possible to predict the point between two centres (e. g. Shopping centres) where the trading influence of each is equal, we can think of this point as the point or line of indifference (i. e. where the utility of the two centres is equal). It sis also the market boundary between the centres. The method uses distance and size to calculate the line of indifference (i. e. the market boundaries) Converse breakpoint method: dy= (dxy) /( 1+ sqrt (ax/ay)) - in textbook, dxy distance btwn x and y, ax attraction to x/y, draw breakpoints at 90 degree angles. The converse formula requires data aon distance between centres and size of centres. Together these two vairables are thought to adequently measure the reative utility of the centres. The formula suggests that the utility of the centre decreases with distance and increases with size.
