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Variability and Location

Author

Listed:
  • A Camacho
  • J Persky

Abstract

In a world of constant variation, locational patterns of firms and industries affect the cost of required adaptations. The efficiency of a locational decision is influenced by the extent and character of the variation with which a firm must cope. Adaptation to change is defined here in the context of the theory of the division of labor. Labor must be allocated both to tasks and to locations. A set of stylized examples for multiplant firms demonstrate that the advantages of a geographically decentralized pattern depend on the extent and frequency of change. Spatial variation in the pattern of change also has important effects.

Suggested Citation

  • A Camacho & J Persky, 1990. "Variability and Location," Environment and Planning A, , vol. 22(1), pages 69-77, January.
  • Handle: RePEc:sae:envira:v:22:y:1990:i:1:p:69-77
    DOI: 10.1068/a220069
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    References listed on IDEAS

    as
    1. Economides, Nicholas & Siow, Aloysius, 1988. "The Division of Markets is Limited by the Extent of Liquidity (Spatial Competition with Externalities)," American Economic Review, American Economic Association, vol. 78(1), pages 108-121, March.
    2. Camacho, Antonio & Persky, Joseph J., 1988. "The internal organization of complex teams : Bounded rationality and the logic of hierarchies," Journal of Economic Behavior & Organization, Elsevier, vol. 9(4), pages 367-380, June.
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