Lin, Chung-cheng; Mai, Chao-cheng; Lai, Ching-chong - In: The Annals of Regional Science 38 (2004) 1, pp. 13-24
This paper uses Shapiro and Stiglitz’s (1984) efficiency wage model embodying the firm’s choice of location to show the existence of an optimal intermediate location without assuming a transport rate that increases with distance. Based on the viewpoint of Shapiro and Stiglitz, we demonstrate...