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Price Sustainabilty of Location Assignments

Author

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  • John M. Hartwick

Abstract

Koopmans and Beckmann indicated that the assignment of indivisible plants to sites for the case of non-zero interplant flows moving at positive transportation cost was not sustainable by a set of site rents or in general by a price system. This paper presents a counter example. The patterns of site and interplant interdependencies are indicated to be crucial qualities in determining whether assignments are price sustainable. Some classical configurations are examined for price stability.

Suggested Citation

  • John M. Hartwick, 1973. "Price Sustainabilty of Location Assignments," Working Papers 112, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:112
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    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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