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The Location of the Firm in Theory

In: The Economics of Industrial Location

Author

Listed:
  • Philip McCann

    (University of Reading)

Abstract

The origins of classical locational analysis are usually associated with Alfred Weber (1909). Weber acknowledged that input resources may be geographically fixed, and in his schema, this partly provides an important explanation why different firms are located in different places. The other aspect of classical reasoning is based on the importance of the concept of distance-transportation costs. Following on the work of Launhardt (1885), Weber attempted to construct a theoretical methodology for determining the optimum location of the firm. The firm in theory is viewed as a point in space which is free to locate anywhere on a heterogeneous plane.

Suggested Citation

  • Philip McCann, 1998. "The Location of the Firm in Theory," Advances in Spatial Science, in: The Economics of Industrial Location, chapter 2, pages 17-47, Springer.
    • Handle: RePEc:spr:adspcp:978-3-662-03702-7_3
    DOI: 10.1007/978-3-662-03702-7_3
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