Geographic differences and the location of new manufacturing facilities

Article Abstract:

To minimize conflicting findings stemming from the use of different methods for modeling the decision-making behind locating an industrial site, this empirical study of determinants of such location decisions develops and presents two innovative location decision complexities. In the first innovation, the decision is partitioned into stages composed of weighted factors. The other innovation enlarges (or buffers) the state-level identified factors by employing plant-specific qualities generated from a Fortune 500 plant study. Relationships pertinent to plant location are identified and tested using a conceptual model. Results indicate that manufacturing facility location decisions cannot be entirely explained by geographical determinants. If considered a staged process (utilizing plant-specific qualities), the decision can be more accurately described as to its determinants.

Decision-making, Decision making, Management, Manufacturing industry, Manufacturing industries, Factories, Location, Industrial locations, Industrial location, Building sites

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Domestic geographic variation in illicit drug prices

Article Abstract:

The geographic variation of the prices of illicit drugs in the US is investigated. It is hypothesized that prohibited drugs become more expensive as one moves farther away from the source of these drugs as a result of weak information flows and major lateral transaction costs. It is also conjectured that the prices of unlawful drugs are negatively related to market size because of economies of scale. To test these assumptions, a survey of law enforcement agencies is administered by the Middle Atlantic-Great Lakes Organized Crime Law Enforcement Network in 1991. Participants are required to indicate three actual drug purchases made by their offices, including the quantity and type of drug. Results generally support the two hypotheses.

Research, Drugs, Prices and rates, Drug traffic, Economic geography

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The effect of technological uncertainty on the optimal location of a competitive firm

Article Abstract:

Analysis is offered of the location decision of a competitive company confronted by technological uncertainty. Such uncertainty could stem from production method changes, input quality, or production machinery. The analysis performed is based on the assumption that the company is averse to risk and that such risk aversion is declining. Use of a simple model reveals that a competitive company will locate to remain nearer to its sources when it is risk averse and when the environment is technologically uncertain.

Analysis, Technological innovations, Production planning, Uncertainty

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