Determination of a Factory's Location in a Large Geographical Area by Using Chaotic Phenomena and Retailers' Location Networks

Toshiharu Ishikawa
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Toshiharu Ishikawa: Faculty of Economics, Chuo University, Tokyo, Japan

Timisoara Journal of Economics, 2009, vol. 2, issue 3(7), 141-150

Abstract: When a manufacturing firm plans to construct a factory, the firm searches a factory's location in a large geographical area. The manufacturer does not determine immediately the factory's location site since the manufacturer cannot have enough information about the economic situation of possible location sites. Thus, the manufacturer reduces the sphere of searching area in a manner of step by step. In this firm's searching processes, the following four steps should be taken: 1) Decision of a prospective region, 2) Selection of a possible area in that region, 3) Selection of a city in that area, 4) Determination of a site in the city. This paper suggests that in the first step, chaotic phenomena have the possibility to be used to identify a prospective region, and then, the retailers' location networks located in the region play a significant role in the selection of a possible area in the region. This paper elucidates how a firm determines a factory's location within a large geographical area.

Keywords: Factory location; Retailers' location network; Monopolistic competition; Chaotic phenomenon (search for similar items in EconPapers)
JEL-codes: R30 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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