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Office and Plant Location With Transport Costs of Information

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Abstract:

In this paper, under the framework of profit maximization office and plant locations are analyzed, taking into account the existing cost of transporting information between the market and the office, and between the office and the plant. The conclusion is that if the office and the plant are located separately, the value of the unit transmission cost of information on production significantly decreases.

Document Type: Original Article

DOI: https://doi.org/10.1111/0022-4146.00041

Affiliations: Department of Economics, Aoyama Gakuin University, 4-4-25 Shibuya, Shibuya-ku, Tokyo 150, Japan

Publication date: 1997-02-01

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