ABSTRACT
Location theory can be as intellectually challenging, as indeterminate as to outcome, as much fun, and about as relevant to regional development as a game of chess. Few branches of economics have generated as much ingenuity, nor have been as abstract, frustrating, and unproductive as location theory. A favourite starting point for writers on location theory is the model introduced in 1929 by Harold Hotelling. Edgar M. Hoover, one of the leading writers on location theory of his generation, put the matter this way: The most obvious basis for the distribution of industries and people is the disposition of natural resources. Writing forty years ago, Hoover already took note of the importance of the personal preferences: "Everyone has some preference as to consumer location, i.e. where he would like to live and spend his income.
