- Reilly's law of retail gravitation
In
economics , Reilly's law of retail gravitation states that larger cities will have larger spheres of influence than smaller ones, meaning people travel further to reach a larger city.The law presumes the geography of the area is flat without any rivers, roads or mountains to alter a consumer's decision of where to travel to buy goods. It also assumes consumers are indifferent between the actual cities.
The law was developed by
William J. Reilly in 1931.: BP= frac{d}{1+ sqrt{p_1/p_2
A plain English paraphrase would be that the balance or Break Point (BP) is equal to the Distance (d) between two places, divided by the following: Unity or Total (1) plus the Square Root of, the size of Place One (p1) divided by the size of Place Two (p_2).
d is distance and p_1 and p_2 are the sizes of the places between which the distance exists; the answer will give the distance from p_2 — also called a break-point. What is the break-point? As an example: after leaving a store a you remember something that you wanted to buy; it just so happens that you are headed towards an alternative store b. The break-point can be thought of as the point after which you would travel towards store b instead of store a because of its notional "gravity". This would happen sooner, for example, if store b is an equivalent store but with greater square footage, suggesting that you are more likely to go to store b for greater available utility. This notional gravity can be influenced by a number of things, but square footage is simple and effective.
ee also
*
Demographic gravitation
*Trip distribution : Gravity Model
*Observations named after people
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