Abstract
Around 1900 Wilhelm Launhardt [1] and Alfred Weber [2] invented the classical model of industrial location. Suppose that a firm produces one product, using two factors of production. The product has to be sold at a prelocated market place, and the input factors have to be bought at two likewise prelocated places where they are available. The three locations normally form the vertices of a triangle. Assuming that production requires fixed proportions of inputs to output, Weber could identify the problem of finding the best location for production with the problem of finding the location at which the sum of transportation costs is minimized.
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References
W. Launhardt, “Die Bestimmung des zweckmässigsten Standorts einer Gewerblichen Anlage”, Zeitschrift des VereinsDeutscher Ingenieure 26:105–115(1882)
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M. J. Beckmann and T. Puu, Spatial Structures. Springer-Verlag (1990)
M. J. Beckmann and T. Puu, Spatial Economics. North-Holland (1985)
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© 1998 Springer-Verlag Berlin · Heidelberg
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Puu, T. (1998). Gradient Dynamics in Webrian Location Theory. In: Beckmann, M.J., Johannsson, B., Snickars, F., Thord, R. (eds) Knowledge and Networks in a Dynamic Economy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-60318-1_12
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DOI: https://doi.org/10.1007/978-3-642-60318-1_12
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