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COMPETITION AND CEMENT BASING POINTS: F.O.B. DESTINATION, DELIVERED FROM WHERE? *
Author(s) -
Karlson Stephen H.
Publication year - 1990
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1990.tb00081.x
Subject(s) - competition (biology) , cement , sample (material) , economics , econometrics , microeconomics , industrial organization , geography , ecology , archaeology , physics , biology , thermodynamics
Spatial price theory suggests that locations which become basing points do so in response to competitive forces. The paper presents a model that captures the effect of those forces. When the model is tested against a sample of cement mills, there is little support for the competitive hypothesis. There is some evidence that the large cement producers determined which locations became basing points.