Firm's location choices by referring to chaotic phenomenon and the central place system
When a manufacturing firm projects to construct a factory, the firm searches a factory's location in large geographical area. The manufacturer does not determine immediately the factory's location site since the manufacturer could not have enough information of economic situation of possible location sites. Thus, the manufacturer makes sphere of searching area small step by step. In this firm's searching processes, the following four steps may 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 proposes that in the first step, chaotic phenomena have the possibility to be used to identify a prospective region, and then, the retailers' location networks laid in the region plays a significant role in the selection of a possible area in the region. This paper elucidates how a firm specifies a factory's location within large geographical area.
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- Edwin S. Mills & Michael R. Lav, 1964. "A Model of Market Areas with Free Entry," Journal of Political Economy, University of Chicago Press, vol. 72, pages 278-278.
- Hisao Nishioka & Gunter Krumme, 1973. "Location Conditions, Factors and Decisions: An Evaluation of Selected Location Surveys," Land Economics, University of Wisconsin Press, vol. 49(2), pages 195-205.
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