Professional Documents
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B B
City borders
willing to pay for land.
• Taller buildings are built on
higher-valued land leading to the
formation of ‘Central Business
District’
• Firm substitutes capital for land
Popn enabling it to produce the same
output on less land, or in other
per words, more output per unit of
square land.
mile • Higher land prices lead profit-
maximizing firms to substitute
other factors of production for
land.
Distance from the center EnP Cadavos 2004
Bid Rent Theory
(William Alonso
1964)
Bid rent theory shows how much different sectors of the economy
are prepared to pay for land. Basic assumption is that accessibility
is increased with centrality and therefore retailers is prepared to
pay a high price for land in the CBD. As distance from the CBD
increases availability of land increases and it is affordable for
residential and even agricultural use. EnP Cadavos 2004
Bid Rent
The price paid to rent or purchase urban land
is a reflection of its utility or usefulness.
Utility is a product of accessibility to
customers & workers or for residents to jobs
and amenities.
Retail
Residential (several components families)
Residential (single families)
Ghetto LOOP
Two Plan
Area
Black Belt
Residential District
Bungalow
Section
Assumptions
Land is Flat
Even Distribution of Resources
Even Distribution of people in
Residential areas
Even Transportation Costs
4
3
Sector or Radial 3
1 3
Model (Homer 3
5
Hoyt, 1939) 2 3 4
1 CBD
2 Wholesale & light manufacturing
3 Low-class residential
4 Middle-class residential
5 High-class residential
6 Heavy manufacturing
7 Sub business district
8 Residential suburb
9 Industrial suburb
4 1
2
3
3 5
3 4
1 3 3 7
5
3
6
3 4
2
9 8
• Most modern
metropolis do not
have just one
center;
• Sections of the
Metropolis tend to
specialize
EnP Cadavos 2004
Metro Manila
NCR seems to follow multiple nuclei
model
Intramuros-Binondo-Quiapo, old center,
heritage conservation, Chinatown as
cultural enclave
Taft to-University Belt – higher educn
Ayala CBD– banking, finance, high-end
retail
Pasig-Ortigas-SM Megamall –
diplomatic/international affairs, mid-level
retail services
Bonifacio Global City – edge city
Libis QC – BPO, call centers
Greenhills – computers, tiangge?
Pasay- MOA area – casino, gambling
Madrigal Business Park with Ayala Alabang
– edge city, satellite city
Needs to be planned as an ‘Extended
Urban Region’ with Bulacan,
Pampanga, Rizal, Cavite, Laguna –
“Logistics Beltway”;
the Dagupan-to-Batangas
conurbation
EnP Cadavos 2004
Multiple nuclei model
Criticisms
Each zone displays a significant degree of
internal heterogeneity
and not homogeneity
No consideration of influence of physical relief
and government policy.
Not applicable to Oriental cities with different
cultural, economic and political backgrounds
It is not true that the rich are moving away from the central city as in
Burgess’ Concentric Model
It is the poor who are moving away from the Central City.
Elite keeps its stranglehold of Central City
social status declines with increasing distance from the center
EnP Cadavos 2004
Inverse Concentric Model
Observed mostly in LDCs, inverse
concentric pattern where the elite and
upperclass reside in central areas. Center
is more desirable than suburbs
social status is related to distance from the
Inverse Concentric
center of the city and declines with
increasing distance from the center.
Reversal of concentric zone model of
Burgess: instead of the rich moving away
from central city, it is the poor who are
moving away from central city.
Cities where this pattern exist are mostly
not fully industrial
primarily administrative and/or religious
centers (or were at the time of their
founding)
central area is the place of the residence of
the elite class
low income families live on the periphery
Reasons for this pattern:
the lack of an adequate and dependable
transportation system restricts the elite
to the center of the city so they can be close
to their places of work
the functions of the city (administrative,
religious, cultural) are controlled by the elite
and concentrated in the center of the city
EnP Cadavos 2004
Industrial city 1786-
1786-1975 was
basically an expansion of the
Mercantile City / Colonial City / Port
City