Economists of the Twentieth Century Series

Classical location theory is extended from its least cost approach to a maximum profit framework in this outstanding collection of Melvin L. Greenhut's key essays. This extension of classical location theory changes the analysis used in location economics from that of pure competition to oligopolistic competition.

Using the analysis which is developed in this volume, locational interdependencies and, in turn, industrial location are shown to be affected by, diverse factors, including among others, marginal cost curves, demand curves and the number of firms in the market. Employing empirical findings to relate theory to practice, the author establishes a general theory via which he investigates and resolves specific issues and problems.

These essays make a major contribution by enabling the reader to appreciate the important developments that have taken place over recent years in location economics. Location Economics and its companion volume, Spatial Microeconomics, will be welcomed by students, teachers and practitioners of economics for improving access to Professor Greenhut's many important essays and papers.

SPATIAL MICROECONOMICS

by Melvin L. Greenhut

Published 1 January 1995

In Spatial Microeconomics, Melvin L. Greenhut argues that sellers in a space economy have the power to set prices, and that this power stems naturally from the geographic separation of markets.

Focusing on differentiated markets, this collection of his acclaimed essays reveals that even the pricing of services, electrical power and many other goods - although not distance related per se - can be analysed from a spatial perspective. Professor Greenhut demonstrates and empirically indicates how and why modern firms price heterogeneously over differentiated markets. The spatial framework sheds light on the impact of mergers and antitrust legislation as well as on international trade and other issues.

These essays are intended to revitalize neoclassical microeconomics by adding a spatial dimension and so making purely and monopolistically competitive frameworks irrelevant. No other collection of essays points uniquely to the need to reformulate microeconomics on the basis of time and space.

Spatial Microeconomics and its companion volume, Location Economics, will be welcomed by students, teachers and practitioners of economics for improving access to Professor Greenhut's many important essays and papers.