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Demand Function and Location Theory of the Firm Under Price Uncertainty

Institute of the Three Principles of the People, Academia Sinica, Taiwan 115, Republic of China

This paper attempts to introduce explicitly the role of demand function into a profit-maximizing location model and examine the effects of increased price uncertainty on the optimum location of the risk-neutral firm. It has been shown that the results derived crucially depend upon the interaction between demand function, production function and transport costs structure.

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				Y.-n. Shieh Increasing Returns to Scale and Location Theory of the Firm Under Price Uncertainty Urban Stud, April 1, 1987; 24(2): 163 - 166. [Abstract] [PDF]