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AA00260492-19990001-0111.pdf
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Title |
Title |
THE LOCATION PRODUCTION THEORY OF HETEROGENEOUS FIRMS
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LAI, Ping-yen
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Department of Financial Management, Da-Yeh University, Department of Economics, Tunghai University
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Keio Economic Society, Keio University
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1999
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Keio economic studies
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36
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1
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1999
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Start page |
111
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128
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Abstract |
We discuss the strategic location interactions between two heterogeneous firms with different technologies in the context of Weber triangle. By assuming the transportation cost to be decreasing in the relative distance between these two firms, a special case of external economies of scale, we find the optimum location will not be independent of demand shock as long as one of the duopolistic firms has a nonlinear technology.
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Keyword |
External Economies of Scale
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