The Location Invariance Theorem in Weberian Space Under Uncertainty

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Title:	The Location Invariance Theorem in Weberian Space Under Uncertainty
Authors:	譚令蒂;Tan, Lin-ti;許松根;Hsu, Song-ken
Contributors:	淡江大學產業經濟學系
Date:	2001-02
Issue Date:	2009-11-30 17:57:22 (UTC+8)
Publisher:	Blackwell
Abstract:	This paper examines the validity of the location invariance theorem in Weberian space under various types of uncertainty. The main results are: Given that the firm's location is constrained to remain at a specified distance from the output market, the optimal location is invariant to any change in product demand if and only if the production function is homothetic for a firm facing demand price uncertainty, or if the production function is homothetic and both inputs are risk-neutral for a firm facing technological uncertainty. Alternatively, given that the distance from the firm's location to the output market is a variable, location invariance occurs for a firm facing demand price uncertainty if the production function is linear homogeneous. In the presence of input price uncertainty the optimal location always varies with a change in product demand. The results can include those previously obtained for linear stochastic location models as special cases and some are new contributions to the literature.
Relation:	Journal of regional science 41(1), pp.97-116
DOI:	10.1111/0022-4146.00209
Appears in Collections:	[Graduate Institute & Department of Industrial Economics] Journal Article

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