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Competition, Supply Areas and Industrial Location: An Equilibrium Perspective

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  • Parr, John B

Abstract

The relationship between producer supply areas and the location of production is considered for a particular class of manufacturing activity. The spatial structure of production is examined by means of a free-entry model, in which producers within a region compete for access to a dispersed commodity input. The situation at long-run equilibrium may be characterized in terms of the output of each producer, the size and shape of his supply area, and the frequency and spacing of producers. This is seen to depend on the prevailing price which is exogenously determined. Various features of the equilibrium are then discussed, including the manner in which it differs from the conventional competitive equilibrium.

Suggested Citation

  • Parr, John B, 1993. "Competition, Supply Areas and Industrial Location: An Equilibrium Perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(3), pages 191-210, September.
    • Handle: RePEc:spr:anresc:v:27:y:1993:i:3:p:191-210
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    Cited by:

    1. Toshiharu Ishikawa & Masao Toda, 1995. "An Unequal Spatial Structure of Location and Price with Consumer Density," The Economic Record, The Economic Society of Australia, vol. 71(2), pages 167-178, June.
    2. Daisuke Nakamura, 2010. "Spatial competition and consumer exclusion: social welfare perspectives in central-place system," Letters in Spatial and Resource Sciences, Springer, vol. 3(3), pages 101-110, October.
    3. Chiara Garau & Giulia Desogus & Mauro Coni, 2019. "Fostering and Planning a Smart Governance Strategy for Evaluating the Urban Polarities of the Sardinian Island (Italy)," Sustainability, MDPI, vol. 11(18), pages 1-24, September.

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