GGR252H1 Lecture Notes - Lecture 8: Census Tract
Document Summary
Possible to predict the point btw. two centres (shopping centres where the trading influence of each is equal). We can think of this point as the point or line of indifference (ex. Where the utility of the two centres is equal). It is also the market boundary btw. the centres) Uses distance and size to calculate the line of indifference (market boundary) The converse formula requires data on distance btw. data on distance btw. centres and size of centres. Together these two variables are thought to adequately measure the relative utility of the centres. The formula suggests that the utility of the centre decreases with distance and increases with size. Size measure could be number of stores, sq. foot of centre, number of employees, number of parking space. Assumptions/criticisms of producing the spatial monopoly: unlike the thiessen polygon method the converse method does not assume that all centres are equal in attractiveness size.
