The production-location problem revisited

Peeters, Dominique; Thisse, Jacques-François

doi:10.1007/s101100050044

The production-location problem revisited

Peeters, Dominique

;

Thisse, Jacques-François

(2000) Papers in Regional Science — Vol. 79, n° 2, p. 221-231 (2000)

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Authors

Peeters, DominiqueUCLouvain
Author
Thisse, Jacques-FrançoisUCLouvain
Author

Abstract

This paper reconsiders the production-location problem (PLP) initiated by Moses. The PLP is extended to allow for the geographical substitution between input sources, which is likely to occur in an integrated market. An algorithm is then proposed to solve this problem. Finally, using numerical examples, it is shown that small variations in the elasticity of substitution of the production function may lead to substantial jumps in the optimal firm location.

Affiliations

UCLouvainEUEN/CORE - Center for operations research and econometrics
UCLouvainEUEN/CORE - Center for operations research and econometrics

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Peeters, D., & Thisse, J.-F. (2000). The production-location problem revisited. Papers in Regional Science, 79(2), 221-231. https://doi.org/10.1007/s101100050044 (Original work published 2000)