This paper examines the impact of non-uniform linear demand on plant location under FOB mill pricing. It shows that the principle of median location and the Rydell principle fail to apply, and some well-established results in plant location theory no longer hold when demand is linear but non-uniform.
Get full access to this article
View all access options for this article.
References
1.
Alonso, W. (1964) Location theory, in: J. Friedman and W. Alonso (Eds) Regional Development and Planning: A Reader. Boston, MA : MIT.
2.
Beckmann, M.J. (1976) Spatial price policies revisited, Bell Journal of Economics, 7, pp. 619-630.
3.
Beckmann, M.J. (1988) Spatial price policy and the distribution of scientific journals, The Annals of Regional Science, 22, pp. 1-7.
4.
Beckmann, M.J. (1989) A note on spatial price when demand is linear but non-uniform, Regional Science and Urban Economics, 19, pp. 103-106.
5.
Gabszewicz, J.J. and Thisse, J.-F. (1986) Spatial competition and the location of firms, in: R. Arnott (Ed.) Location Theory . New York: Hardwood Academic.
6.
Greenhut, M.L., Mai, C.C. and Norman, G. (1986) Impacts on optimum location of different strategies, market structures and consumer distributions over space, Regional Science and Urban Economics, 19, pp. 319-315.
7.
Mai, C.C. (1976) Aspects of plant location theory under conditions of uncertainty. Unpublished PhD thesis, Texas A & M University, College Station, Texas.
8.
Rydell, P. (1967) A note on a location principle between the median and the mode, Journal of Regional Science, 7, pp. 185-192.
9.
Shieh, Y.N. (1989) The Beckmann-Zipf effect and plant location under uniform pricing, Economics Letters, 30, pp. 89-92.
