Location structure theories
Location structure theories ask for the optimal arrangement of enterprises in the area and their change with the time. To the location structure theories belong the rings of the Johann Heinrich of and from Walter all developed system of the centers of places.
Theories of the business choice of location
Theories of the business choice of location concern themselves with the optimal enterprise location, thus the location of an individual enterprise.
For the problem of the optimal operating location the motive for profit is fundamental in the free free-market economy – at which place thus can the highest profit be The enlargement of the market share, future security and subjective motives do not play however a role which can be underestimated.
If these goals are certain, the optimal location can be selected after these categories. In addition the conditions (location factors) on different spatial levels are to be compared: Which country is best suitable for the new Which And finally which municipality and where there
Neoclassical location theory
Alfred Weber set up a model for the determination of optimal locations for the industriellen individual enterprise, which is affected substantially by the location factor transport costs in his fundamental work over the location of the industries (1909). To its model from the outset critically was noticed that its premises are rather out of touch with reality, then e.g. presupposes Weber an unlimited worker offer or complete information of the decision makers over the spatial distribution of the markets and the location factors. Also Weber theory is strongly for the transport costs appropriate and neglected as substantial factor of the location decision thereby all other factors of production.
1956 extended Walter Isard of Weber location theory by Andreas substitution principle and revalued thereby the location decision to a substitution decision between factors of production in a general equilibrium model.
David M. Smith extended this theory by a variable cost model, so that in the context of a total model all space dependent costs and proceeds of the enterprises can be regarded. Smith introduced also aspects like business being able, regional policy and regional taxes into the model.
By its extensions the neoclassical location theory became more meaningful. Some the premises already criticized with Weber (purer “homo oeconomicus”, complete information, short term maximization of profit) it leads however to the fact that not all actual business location decisions can be explained satisfying by neoclassical models.
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