![]() To solve this problem, Weber uses the location triangle within which the optimal is located. Transportation is the most important element of the model since other factors are considered only to have an adjustment effect. Solving Weber’s location model usually implies three stages finding the least transport cost location and adjusting this location to consider labor costs and agglomeration economies. Location thus implies an optimal consideration of these factors. ![]() According to Weber, three main factors influence industrial location transport costs, labor costs, and agglomeration economies. Several natural resources, such as water, are ubiquitous (available everywhere), while many production inputs such as labor, fuel, and minerals, are available at specific locations. The model also assumes perfect competition, implying a high number of firms and customers, small firm sizes (to prevent disruptions created by monopolies and oligopolies), and complete knowledge of market conditions, both for the buyers and suppliers. Those conditions are quite similar to those behind Von Thunen’s agricultural land use model elaborated almost one hundred years earlier. ![]() Location occurs in an isolated region (no external influences) composed of one market, that space is isotropic (no variations in transport costs except a simple function of distance) and that markets are located in a specific number of centers. One of its core assumptions is that firms will choose a location minimizing their total costs through a set of simplifications. Alfred Weber’s work (1909) is considered the foundation of modern location theories and a basic P-median location problem.
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