On the exclusion theorem'

This paper examines the locational decision of the firm in a linear space economy under increasing returns to scale and imperfect competition. All intermediate locations are excluded by the firm from its possible location without being adversely affected. This is a stronger result than Sakashita's and Mathur's which require non-increasing returns to scale and perfectness in input markets. In this sense, our paper leads to a more general version of the Exclusion Theorem.