ABSTRACT
The previous chapter showed how some location models interpret the location choices of firms solely in terms of the two strategic economic forces that characterize location processes: transportation costs, which induce the dispersion of activities, and agglomeration economies, which instead give rise to concentration. By balancing these opposing forces, the models examined were able to account for the existence of agglomerations of economic activities. They did so, moreover, by hypothesizing a perfectly uniform space without the geographic features that can straightforwardly explain the spatial concentration of economic activities.
