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locational interdependence |
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The dependence of locational choice on the location chosen by others. The location of any factory will be dependent to some extent on the location of suppliers or consumers, but locational interdependence generally refers to situations where choice of location depends on that of competitors. The locational interdependence approach in industrial location theory is closely associated with the theory of imperfect competition, in which it is recognized that geographical space necessarily introduces imperfections in market competition (see Hotelling model; market-area analysis; variable revenue analysis). (DMS) |
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