EXTERNAL ECONOMIES OF SCALE AND OPTIMAL PLANT LOCATION: CORRECTION |
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| Authors: | HONG HWANG CHAO‐CHENG MAI YEUNG‐NAN SHIEH |
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| Affiliation: | 1. National Taiwan University and Research Center for Humanities and Social Sciences, Academia Sinica;2. Tamkang University and Research Center for Humanities and Social Sciences, Academia Sinica;3. San Jose State University |
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| Abstract: | This note shows that there is no interior solution in Mai and Hwang's oligopolistic location model with free entry when the sum of external economies scale and the degree of returns‐to‐scale is one or less than one. Furthermore, the shape of the demand function plays a key role in the determination of the oligopolistic firm's plant location. |
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