The Von Thünen
Model
Understand how distance from market, transportation costs, and land rent shape agricultural land use in concentric zones around a central city.
What Is the Von Thünen Model?
In 1826, German economist Johann Heinrich von Thünen proposed a model to explain how agricultural land use organizes itself around a central marketplace. He asked a simple question: why do farmers grow different crops at different distances from the city?
Key Terms to Know
Model Assumptions
The Bid-Rent Formula
Von Thünen expressed land rent as a function of distance. The locational rent (or bid rent) for a crop is:
The Four Concentric Rings
Bid-Rent Curves Explained
Why Each Ring Forms
Von Thünen vs. Burgess Model
| Von Thünen (1826) | Burgess (1925) | |
|---|---|---|
| Focus | Agricultural land use | Urban land use |
| Scale | Regional (farms around a city) | Intra-urban (zones within a city) |
| Driving Force | Transport cost of farm goods | Competition for access to CBD |
| Rings Contain | Different crop types | Different social/economic zones |
| Key Variable | \( R = Y(P - C) - Y \cdot t \cdot d \) | Rent gradient from CBD |
How to Apply the Model
Example 1: Computing Rent
A dairy farmer has: yield \( Y = 100 \text{ units/km}^2 \), market price \( P = \$5/\text{unit} \), production cost \( C = \$2/\text{unit} \), and a transport rate of \( t = \$0.50/\text{unit/km} \). What is the land rent at \( d = 3 \text{ km} \)?
Example 2: Ring Boundary
Two crops compete for land. Dairy: \( R_1 = 300 - 50d \). Grain: \( R_2 = 150 - 15d \). At what distance does the ring boundary occur?
Example 3: The River Effect
Modern Applications
Von Thünen's model was built for 1826, but its logic still appears in the real world today:
Common Mistakes
Summary of Rings
| Ring | Land Use | Transport Cost | Bid-Rent Slope | Distance |
|---|---|---|---|---|
| 1 | Dairy / Market Gardens | Highest | Steepest | Closest |
| 2 | Timber / Forestry | High | Steep | Near |
| 3 | Crop Farming (Grain) | Moderate | Gentle | Far |
| 4 | Ranching / Livestock | Lowest | Flattest | Farthest |
Question 1 of 5
In Von Thünen's model, which factor is the primary determinant of which crop is grown at a given location?
Question 2 of 5
A crop has \( Y = 200 \), \( P = \$4 \), \( C = \$1 \), and \( t = \$0.30 \). What is the maximum distance from market at which this crop is profitable (where \( R = 0 \))?
Question 3 of 5
In the original Von Thünen model, Ring 2 is occupied by timber and forestry. Which best explains why timber is closer to the city than grain?
Question 4 of 5
If a navigable river extends northeast from the central city, how would the concentric rings change along that river?
Question 5 of 5
Which statement best distinguishes the Von Thünen model from the Burgess concentric zone model?