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Demand Function and Location Theory of the Firm Under Price Uncertainty

Chao-cheng Mai
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Chao-cheng Mai: Institute of the Three Principles of the People, Academia Sinica, Taiwan 115, Republic of China

Urban Studies, 1984, vol. 21, issue 4, 459-464

Abstract: This paper attempts to introduce explicitly the role of demand function into a profit-maximizing location model and examine the effects of increased price uncertainty on the optimum location of the risk-neutral firm. It has been shown that the results derived crucially depend upon the interaction between demand function, production function and transport costs structure.

Date: 1984
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:21:y:1984:i:4:p:459-464

DOI: 10.1080/00420988420080841

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