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Abstract

This article presents an introduction to nonparametric location demand theory. The general framework is presented in simplified form, new graphical proofs are provided for established results, and the analysis is extended to provide new nonparametric results as well. One contribution of the nonparametric approach is that it is sometimes more easily extended than parametric models to deal with complications. Another contribution is that it brings the standard approach to location theory closer to the revealed preference approach, motivating a new empirical research agenda based on the latter methodology, testing the ordinal relationships predicted by the theory.

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Turnbull, G.K. Nonparametric location theory. J Real Estate Finan Econ 7, 169–184 (1993). https://doi.org/10.1007/BF01096964

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