Location (Spatial Economics)
Is the idea of location useful to
regional revitalization
?
Location effects the economy in the area.
Models of Location
There are popular models in urban geography.
-
Christaller's Central Place Theory : Hexagon cell network
-
von Thunen's Model :
It suggests negative correlation between distance from central place and the price of land
-
Product Cycle Model :
Product cycle model suggests that function of the city change.
Products have steps, design, test piece and mass production.
This model suggests that changes of distribution follow the change of the place to product.
Accumulation of Industry
The accumulation of industry has good effects.
These effects are also
externality
.
-
The network of companies prevent the damage caused by the incident of a company.
-
Flow of imfomation is well because they can meet directly
-
Direct communication brings strong confidence.
And they can move without contracts.
(It wastes time and costs to make detailed contracts.)
-
Reduction the cost of transportation
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Social Psychology
