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Determination of a Factory's Location in a Large Geographical Area by Using Chaotic Phenomena and Retailers' Location Networks


  • Toshiharu ISHIKAWA

    (Faculty of Economics, Chuo University, Tokyo, Japan)


When a manufacturing firm plans to construct a factory, the firm searches a factory's location in a large geographical area. The manufacturer does not determine immediately the factory's location site since the manufacturer cannot have enough information about the economic situation of possible location sites. Thus, the manufacturer reduces the sphere of searching area in a manner of step by step. In this firm's searching processes, the following four steps should be taken: 1) Decision of a prospective region, 2) Selection of a possible area in that region, 3) Selection of a city in that area, 4) Determination of a site in the city. This paper suggests that in the first step, chaotic phenomena have the possibility to be used to identify a prospective region, and then, the retailers' location networks located in the region play a significant role in the selection of a possible area in the region. This paper elucidates how a firm determines a factory's location within a large geographical area.

Suggested Citation

  • Toshiharu ISHIKAWA, 2009. "Determination of a Factory's Location in a Large Geographical Area by Using Chaotic Phenomena and Retailers' Location Networks," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 2(3(7)), pages 141-150.
  • Handle: RePEc:wun:journl:tje:v02:y2009:i3(7):a04

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    References listed on IDEAS

    1. M. Greenhut & H. Ohta, 1973. "Spatial configurations and competitive equilibrium," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 109(1), pages 87-104, March.
    2. repec:ner:ucllon: is not listed on IDEAS
    3. Capozza, Dennis R & Van Order, Robert, 1978. "A Generalized Model of Spatial Competition," American Economic Review, American Economic Association, vol. 68(5), pages 896-908, December.
    4. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
    5. Toshiharu Ishikawa & Masao Toda, 1998. "An Application of the Frontier Price Concept in Spatial Equilibrium Analysis," Urban Studies, Urban Studies Journal Limited, vol. 35(8), pages 1345-1358, July.
    6. Toshiharu Ishikawa & Masao Toda, 2000. "Some Economic Extensions of Central-place Theory Involving Profit Maximisation," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 481-495, March.
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    Cited by:

    1. Toshiharu Ishikawa, 2015. "Location power of the corporation tax and the interest rate in the globalized economy," ERSA conference papers ersa15p52, European Regional Science Association.
    2. Toshiharu Ishikawa, 2014. "Effects of the corporate tax rates on firms' location selections through the trasfer pricing system," ERSA conference papers ersa14p16, European Regional Science Association.

    More about this item


    Factory location; Retailers' location network; Monopolistic competition; Chaotic phenomenon;

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General


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