Abstract
The purpose of this paper is to develop a welfare-maximizing location model for a regulated firm and then to compare it with a profit-maximizing model as set forth by previous location theorists. It will be shown that two otherwise identical firms harboring different objectives will have different patterns of industrial location.
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The authors would like to thank Professors Curtis Eaton and Stuart Mestelman for useful comments and suggestions.
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Hwang, H., Mai, Cc. Welfare-maximizing location versus profit-maximizing location. Ann Reg Sci 20, 54–64 (1986). https://doi.org/10.1007/BF01283623
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DOI: https://doi.org/10.1007/BF01283623