Price Sustainabilty of Location Assignments

John Hartwick

Working Paper from Economics Department, Queen's University

Abstract: Koopmans and Beckmann indicated that the assignment of indivisible plants to sites for the case of non-zero interplant flows moving at positive transportation cost was not sustainable by a set of site rents or in general by a price system. This paper presents a counter example. The patterns of site and interplant interdependencies are indicated to be crucial qualities in determining whether assignments are price sustainable. Some classical configurations are examined for price stability.

Pages: 26
Date: 1973
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Journal Article: Price sustainability of location assignments (1974)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:112

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