This paper investigates the impact of monopsony power on the location decision of the firm. It shows that if the transportation rates are a function of distance only and the production function is homogeneous of degree one, the optimum location is independent of monopsony power. However, if the...

This research note incorporates price uncertainty into a production- location model and examines the impacts of a revenue-neutral tax policy on production and location decisions. In particular, it is shown that under an assumption of decreasing absolute risk aversion, a revenue-neutral rise in...

In this article, a triangular production-location model is used to show that when output price is random, the imposition of business taxes (including lump-sum tax, profit tax, output tax, and input tax) can have significant effects on the optimal location and output of a firm attempting to...