Skip to main content
SpringerLink
Log in

Of Shoes and Ships and Shredded Wheat, Of Cabbages and Cars: The Contemporary Relevance of Location Theory

  • Chapter
Does Economic Space Matter?

Abstract

Spatial economics has as its remit the study of the use of a finite resource — space. It takes explicit account of the twin facts that economic activities both consume space and are separated by distance. Two principal sets of questions are addressed: how economic agents of various types choose their locations in a spatially extensive economy, and how the market areas of these agents are determined.

‘The time has come,’ the Walrus said, ‘To talk of many things: Of shoes and ships and sealing-wax Of cabbages and kings

(with apologies to Lewis Carroll, Through the Looking Glass)

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • al-Nowaihi, A. and G. Norman (1992) The Principle of Minimum Differentiation Revisited: Cournot versus Bertrand University of Leicester Discussion Paper in Economics, no. 92/1.

    Google Scholar 

  • Alonso, W. (1964) ‘Location Theory’, Chapter 4 in J. Friedmann and W. Alonso (eds), Regional Development and Planning ( Cambridge, Mass.: MIT Press).

    Google Scholar 

  • Anderson, S. P., A. de Palma and J.-F. Thisse (1992) Discrete Choice Theory of Product Differentiation ( Cambridge, Mass.: MIT Press).

    Google Scholar 

  • Archibald, B. C., B. C. Eaton and R. G. Lipsey (1986) ‘Address Models of Value Theory’, in J. E. Stiglitz and G. F. Matthewson (eds), New Develop-ments in the Analysis of Market Structure ( London: Macmillan ).

    Google Scholar 

  • Beckmann, M. (1968) Location Theory (New York: Harper 0026 Brothers).

    Google Scholar 

  • Blaug, M. (1985) Economic Theory in Retrospect, 4th edn ( London: Cam-bridge University Press).

    Google Scholar 

  • Brander, J. A. (1981) ‘Intra-industry Trade in Identical Commodities’, Journal of International Economics, vol. 11, pp. 2–14.

    Article  Google Scholar 

  • Brander, J. A. and P. Krugman (1983) ‘A Reciprocal Dumping Model of International Trade’, Journal of International Economics, vol. 15, pp. 313–21.

    Article  Google Scholar 

  • Buckley, P. J. and M. C. Casson (1976) The Future of the Multinational Enterprise ( London: Macmillan).

    Google Scholar 

  • Buckley, P. J. and M. C. Casson (1985) The Economic Theory of the Multinational Enterprise ( London: Macmillan).

    Google Scholar 

  • Cameron, G. (ed.) (1980) The Future of the British Conurbations ( London: Longman ).

    Google Scholar 

  • Casson, M. C. (ed.) (1990) Multinational Corporations ( Aldershot: Edward Elgar ).

    Google Scholar 

  • Christaller, W. (1966) Central Places in Southern Germany (Englewood Cliffs, NJ: Prentice-Hall, first published as Die zentralen Orte in Süddeutschland, 1933 ).

    Google Scholar 

  • d’Aspremont, C. J., J. Gabszewicz and J.-F. Thisse (1979) ‘On Hotelling’s “Stability in Competition”’, Econometrica, vol. 47, pp. 1145–50.

    Article  Google Scholar 

  • de Fraja, G. and G. Norman (1993) ‘Product Differentiation, Pricing Policy and Equilibrium’, Journal of Regional Science (forthcoming).

    Google Scholar 

  • Downs, A. (1957) An Economic Theory of Democracy (New York: Harper 0026 Row).

    Google Scholar 

  • Dunning, J. H. (1981) International Production and the Multinational Enterprise (London: Allen 0026 Unwin).

    Google Scholar 

  • Dunning, J. H. (1986) Japanese Participation in British Industry ( London: Croom Helm).

    Google Scholar 

  • Eaton B. C. and R. G. Lipsey (1975) ‘The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition’, Review of Economic Studies, vol. 42, pp. 27–49.

    Article  Google Scholar 

  • Enelow, J. M. and M. J. Hinich (1984) The Spatial Theory of Voting: An Introduction ( Cambridge: Cambridge University Press).

    Google Scholar 

  • Feldman, E., F. A. Lehrer and T. L. Ray (1966) ‘Warehouse Locations Under Continuous Economies of Scale’, Management Science, vol. 12, pp. 670–84.

    Article  Google Scholar 

  • Fetter, F. A. (1924) ‘The Economic Law of Market Areas’, Quarterly Journal of Economics, vol. XXXVIII, pp. 520–9.

    Google Scholar 

  • Friedrich, C. J. (trans.) (1929) Alfred Weber’s Theory of Location of Industries ( Chicago: University of Chicago Press ).

    Google Scholar 

  • Fujita, M. (1986) ‘Urban Land Use Theory’, in J. Gabszewicz and J.-F. Thisse (eds) Location Theory ( London: Harwood Academic Publishers ).

    Google Scholar 

  • Fujita, M. (1989) Urban Economic Theory: Land Use and Urban Size ( Cam-bridge: Cambridge University Press).

    Google Scholar 

  • Greenhut, M. L. (1956) Plant Location in Theory and Practice ( Chapel Hill, NC: University of North Carolina Press).

    Google Scholar 

  • Greenhut, J. and M. L. Greenhut (1975) ‘Spatial Price Discrimination, Competition and Location Effects’, Economica, vol. 42, pp. 401–19.

    Google Scholar 

  • Greenhut, M. L. and C. C. Mai (1980) ‘Towards a General Theory of Public and Private Facility Location’, Annals of Regional Science, vol. 14, pp. 1–11.

    Article  Google Scholar 

  • Greenhut, M. L. and H. Ohta (1975) Theory of Spatial Pricing and Market Areas ( Durham, NC: Duke University Press).

    Google Scholar 

  • Greenhut, M. L., G. Norman and C.-S. Hung (1987) The Economics of Imperfect Competition: A Spatial Approach ( Cambridge: Cambridge University Press).

    Google Scholar 

  • Greenhut, M. L., H. Ohta and J. Sailors (1985) ‘Reverse Dumping: A Form of Spatial Price Discrimination’, Journal of Industrial Economics, vol. XXXIV, pp. 167–82.

    Google Scholar 

  • Grubel, H. G. and P. J. Lloyd (1975) Intra-Industry Trade: The Theory and Measurement of Trade in Differentiated Products ( New York: John Wiley).

    Google Scholar 

  • Hakimi, S. L. (1964) ‘Optimum Locations of Switching Centers and the Absolute Centers and Medians of a Graph’, Operations Research, vol. 12, pp. 450–9.

    Google Scholar 

  • Hamilton, J. H., J.-F. Thisse and A. Weskamp (1989) Spatial Discrimination: Bertrand vs. Cournot in a Model of Location Choice’, Regional Science and Urban Economics, vol. 19, pp. 87–102.

    Article  Google Scholar 

  • Hamilton, J. H., J. F. Klein, E. Sheshinski and S. M. Slutsky (1991) ‘Quantity Competition in a Spatial Model’, University of Florida, mimeo.

    Google Scholar 

  • Hoover, E. M. (1937) ‘Spatial Price Discrimination’, Review of Economic Studies, vol. 4, pp. 182–91.

    Article  Google Scholar 

  • Hoover, E. M. (1948) The Location of Economic Activity ( New York: McGraw-Hill).

    Google Scholar 

  • Hotelling, H. (1929) ‘Stability in Competition’, Economic Journal, vol. 39, pp. 41–57.

    Article  Google Scholar 

  • Hymer, S. (1960) The International Operations of National Firms ( Cambridge, Mass.: MIT Press).

    Google Scholar 

  • Isard, W. (1956) Location and Space Economy ( Cambridge, Mass.: MIT Press).

    Google Scholar 

  • Judd, K. L. (1985) ‘Credible Spatial Preemption’, Rand Journal of Economics, vol. 16, pp. 153–66.

    Article  Google Scholar 

  • Krugman, P. (1991a) ‘Increasing returns and economic geography’, Journal of Political Economy, vol. 99, pp. 483–99.

    Article  Google Scholar 

  • Krugman, P. (1991b) ‘History Versus Expectations’, Quarterly Journal of Economics, vol. CVI, pp. 651–67.

    Google Scholar 

  • Krugman, P. (1991c) Geography and Trade (Leuven: Leuven University Press, and Cambridge, Mass.: MIT Press).

    Google Scholar 

  • Lancaster, K. (1966) ‘A New Approach to Consumer Theory’, Journal of Political Economy, vol. 74, pp. 132–57.

    Article  Google Scholar 

  • Lancaster, K. (1979) Variety, Equity and Efficiency ( New York: Columbia University Press).

    Google Scholar 

  • Launhardt, W. (1885) Mathematische Begründung der Volkswirtschaftslehre ( Stuttgart: B. G. Taubner).

    Google Scholar 

  • Lerner, A. P. and H. W. Singer, (1937) ‘Some Notes on Duopoly and Spatial Competition’, Journal of Political Economy, vol. 45, pp. 145–86.

    Article  Google Scholar 

  • Leven, C. L. (ed.) (1978) The Mature Metropolis ( Lexington, Mass.: Lexing-ton Books ).

    Google Scholar 

  • Leven, C. L. (1986) ‘Analysis and Policy Implications of Regional Decline’, American Economic Review, vol. 76, pp. 308–12.

    Google Scholar 

  • Lösch, A. (1940) Die räumliche Ordnung der Wirtschaft ( Jena: Gaston Fischer).

    Google Scholar 

  • Lösch, A. (1954) The Economics of Location ( New Haven, Conn.: Yale University Press).

    Google Scholar 

  • MacLeod, B., G. Norman and J.-F. Thisse (1988) ‘Price Discrimination and Equilibrium in Monopolistic Competition’, International Journal of Industrial Organization, vol. 6, pp. 429–46.

    Article  Google Scholar 

  • Manski C. F. and D. McFadden (1981) Structural Analysis of Discrete Data with Economic Applications ( Cambridge, Mass.: MIT Press).

    Google Scholar 

  • Massaro, B. (1975) Location and Space in Social Administration ( London: Edward Arnold).

    Google Scholar 

  • Mertens, Y. and V. Ginsburgh (1985) ‘Product Differentiation and Price Discrimination in the European Community: The Case of Automobiles’, Journal of Industrial Economics, vol. XXXIV, pp. 151–66.

    Google Scholar 

  • Mills, E. S. (1972) Urban Economics (Glenview, Ill.: Scott, Foresman).

    Google Scholar 

  • Muth, R. F. (1967) ‘Urban Residential and Housing Markets’, in H. Perloff and L. Wingo (eds), Issues in Urban Economics ( Baltimore, Md: Johns Hopkins Press ).

    Google Scholar 

  • Nerlove, M. L. and E. Sadka (1991) ‘Von Thünen’s Model of the Dual Economy’, Journal of Economics, vol. 54, pp. 97–123.

    Article  Google Scholar 

  • Norman, G. (1979) Economies of Scale, Transport Costs and Location (The Hague, The Netherlands: Martinus Nijhoff).

    Google Scholar 

  • Norman, G. (1983) ‘Spatial Pricing with Differentiated Products’, Quarterly Journal of Economics, vol. 98, pp. 291–310.

    Article  Google Scholar 

  • Norman, G. (1992) ‘Japanese Investment: The European Regional Impact’, University of Leicester, mimeo.

    Google Scholar 

  • Norman, G. and J.-F. Thisse (1992) ‘Entry Deterrence with Flexible Manufacturing Systems’, University of Leicester, mimeo.

    Google Scholar 

  • Pinto, J. V. (1977) ‘Launhardt and Location Theory: Rediscovery of a Neglected Book’, Journal of Regional Science, vol. 17, pp. 17–30.

    Article  Google Scholar 

  • Ponsard, C. (1986) ‘August Lösch: A Famous but Ignored Economist’, in R. A. Funks and A. Kuklinski (eds), Space, Structure, Economy: A Tribute to August Lösch (Karlstarme: von Loepere Veilag).

    Google Scholar 

  • Prescott, E. G. and M. Visscher (1977) ‘Sequential Location Among Firms with Foresight’, Bell Journal of Economics, vol. 24, pp. 313–20.

    Google Scholar 

  • Rothschild, R. (1976) ‘A Note on the Effect of Sequential Entry on Choice of Location’, Journal of Industrial Economics, vol. 24, pp. 313–20.

    Article  Google Scholar 

  • Schmalensee, R. (1978) ‘Entry Deterrence in the Ready-to-eat Breakfast Cereal Industry’, Bell Journal of Economics, vol. 8, pp. 305–27.

    Article  Google Scholar 

  • Selten, R. (1975) ‘Reexamination of the Perfectness Concept for Equilibrium Points in Extensive Games’, International Journal of Game Theory, vol. 4, pp. 25–55.

    Article  Google Scholar 

  • Shieh, Y. N. and I. Goldberg (1985) ‘Lardner’s Law of Squares’, Economica, vol. 52, pp. 509–12.

    Article  Google Scholar 

  • Smithies, A. (1941) ‘Optimal Location in Spatial Competition’, Journal of Political Economy, vol. 49, pp. 429–39.

    Article  Google Scholar 

  • Takayama, T. and G. G. Judge (1971) Spatial and Temporal Price and Allocation Models ( Amsterdam: North-Holland).

    Google Scholar 

  • Thisse, J.-F. and H. G. Zoller (eds) (1983) Locational Analysis of Public Facilities ( Amsterdam: North-Holland ).

    Google Scholar 

  • Tirole, J. (1988) The Theory of Industrial Organization ( Cambridge, Mass.: MIT Press).

    Google Scholar 

  • United Nations (1992) World Investment Report 1991 ( New York: United Nations Center for Transnational Corporations ).

    Google Scholar 

  • von Thünen, J. H. (1826) Der Isolierte Staat in Beziehung auf Landwirtschaftund Nationalökonomie, republished 1966 by Gustav Fischer, Stuttgart.

    Google Scholar 

  • Weber, A. (1909) Über den Standort der Industrien ( Tübingen: J. C. B. Mohr).

    Google Scholar 

Download references

Authors
  1. George Norman
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Aoyama Gakuin University, Tokyo, Japan

    Hiroshi Ohta (Professor of Economics) (Professor of Economics)

  2. Université de Paris I-Sorbonne, France

    Jacques-François Thisse (Professor of Economics) (Professor of Economics)

  3. CERAS, Ecole Nationale des Ponts et Chaussées, Paris, France

    Jacques-François Thisse (Professor of Economics) (Professor of Economics)

Copyright information

© 1993 Hiroshi Ohta and Jacques-François Thisse

About this chapter

Cite this chapter

Norman, G. (1993). Of Shoes and Ships and Shredded Wheat, Of Cabbages and Cars: The Contemporary Relevance of Location Theory. In: Ohta, H., Thisse, JF. (eds) Does Economic Space Matter?. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-22906-2_3

Download citation

Publish with us

Policies and ethics

Search

Navigation