Price Sustainabilty of Location Assignments
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.
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