Zipf’s law and South African towns

An important question has exercised the minds of many economist over time: why are there differences in the sizes of different towns? For instance, why are all towns in a region not of equal size? The answer has to do with power laws.

There is no Hobbesian significance in the word ‘power’ – it is just a mathematical term. If the value of some quantity q depends on the value of another quantity x according to a power-law relationship, this means that each time x is doubled, y increases by some constant factor (Ball, 2005).

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