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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)

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    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.

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    File URL: http://www.tje.uvt.ro/index.php/tje/article/download/52/pdf
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    Article provided by West University of Timisoara, Romania, Faculty of Economics and Business Administration in its journal Timisoara Journal of Economics.

    Volume (Year): 2 (2009)
    Issue (Month): 3(7) ()
    Pages: 141-150

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    Handle: RePEc:wun:journl:tje:v02:y2009:i3(7):a04
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    1. Aghion, Philippe & Tirole, Jean, 1994. "Formal and Real Authority in Organizations," IDEI Working Papers 37, Institut d'Économie Industrielle (IDEI), Toulouse.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
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