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The New Palgrave Dictionary of Economics pp 7973–7980Cite as

Palgrave Macmillan

Location Theory

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Abstract

Location theory deals with what is where. ‘What’ refers to any possible type of economic activity involving stores, dwellings, plants, offices, or public facilities. ‘Where’ refers to areas such as regions, cities, political jurisdictions, or custom unions. The objective of location theory is to explain why particular economic activities choose to establish themselves in particular places. Here we focus on spatial competition theory between firms, where locations are subject to attracting and repelling forces. We then extend this framework in order to account for the residential choices made by consumers.

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Authors and Affiliations

  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    Jacques-François Thisse

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  1. Jacques-François Thisse
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© 2018 Macmillan Publishers Ltd.

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Thisse, JF. (2018). Location Theory. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2185

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