Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Welfare-maximizing and profit-maximizing agroindustry location: A comparison
Abstract. Traditionally, the location model has assumed that firms choose their location and input usage so as to maximize their profits. However, in the planning version of the location model, the industrial location might be selected on the basis of a welfare-maximizing objective. This paper attempts to develop systematically the theory of plant location for a welfare-maximizing agroindustrial firm and to compare it with its profit-maximizing counterpart. Our analysis shows that, unless the transport cost of raw materials is linear in distance and the firm's production function is homogeneous of degree one, the welfare-maximizing location chosen by a regulated agroindustrial firm always differs from that of its profit-maximizing counterpart. It also demonstrates that the results obtained previously for a non-agroindustrial firm cannot be applied directly to its agroindustrial counterpart.
Welfare-maximizing and profit-maximizing agroindustry location: A comparison
Abstract. Traditionally, the location model has assumed that firms choose their location and input usage so as to maximize their profits. However, in the planning version of the location model, the industrial location might be selected on the basis of a welfare-maximizing objective. This paper attempts to develop systematically the theory of plant location for a welfare-maximizing agroindustrial firm and to compare it with its profit-maximizing counterpart. Our analysis shows that, unless the transport cost of raw materials is linear in distance and the firm's production function is homogeneous of degree one, the welfare-maximizing location chosen by a regulated agroindustrial firm always differs from that of its profit-maximizing counterpart. It also demonstrates that the results obtained previously for a non-agroindustrial firm cannot be applied directly to its agroindustrial counterpart.
Welfare-maximizing and profit-maximizing agroindustry location: A comparison
Tan, Lin-Ti (Autor:in)
2000
Aufsatz (Zeitschrift)
Englisch
Welfare-maximizing location versus profit-maximizing location
| Online Contents | 1986
A location—allocation model maximizing consumers' welfare
| Taylor & Francis Verlag | 1981
Maximizing expected contractor profit using an integrated model
| Emerald Group Publishing | 2019
Agroindustry location under output price uncertainty
| Online Contents | 1999