Classical Contributions: Von Thünen and Weber

Abstract

Within location theory, classical models are typical abstract and formalized models, in which the main reasoning behind location choice of firms is driven by the minimization of transportation costs to achieve natural and intermediate production resources, and markets for final goods that are territorially dispersed. Classical models are similar in the question they want to reply to: what economic logic explains the location choices of firms in space? This topic is an important one. Although in terms of time and financial resources, the performance of transport and communication has improved enormously, many economic activities have not become footloose to the extent expressed by the “death of distance.” Their location choice still remains anchored to a balance between a physical location generating economic advantages – in the form of agglomeration economies – and transport costs to intermediate or final markets, as explained by these models.