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The production-location problem revisited

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  • PEETERS , Dominique
  • THISSE, Jacques-François

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • PEETERS , Dominique & THISSE, Jacques-François, 2000. "The production-location problem revisited," LIDAM Reprints CORE 1462, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1462
    Note: In : Papers in Regional Science, 79, 221-231, 2000.
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    Cited by:

    1. Gaigné, C. & Hovelaque, V. & Mechouar, Y., 2020. "Carbon tax and sustainable facility location: The role of production technology," International Journal of Production Economics, Elsevier, vol. 224(C).
    2. Y. Mechouar & Vincent Hovelaque & Carl Gaigne, 2022. "Effect of raw material substitution on the facility location decision under a carbon tax policy," Post-Print halshs-03517835, HAL.
    3. Jiwon Baik & Alan T. Murray, 2022. "Locating a facility to simultaneously address access and coverage goals," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1199-1217, October.
    4. Youcef MECHOUAR & V Hovelaque & C Gaigné, 2021. "Effect of raw material substitution on the facility location decision under a carbon tax policy," Post-Print hal-04155066, HAL.

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