ABSTRACT
The Economic Activity Equilibrium (EAE) approach in location theory is as old as neoclassical economics. It begins with von Thünen (1826) and continues through Loria (1880), Launhardt (1885), Weber (1909), and Palander (1935) to Lösch (1940) and Hoover (1948). The 1950s saw the introduction of Linear Programming and Nonlinear Programming Models by Koopmans (1949), Beckmann (1952) and others. The programming approach proved to be eminently suitable for modelling spatial relationships, in particular interlocal commodity flows. In fact transportation and location are considered as complementary aspects of the same phenomena: the spatial realization of a market economy. The interaction of transportation and location is the subject of Section 3.2.
