Industrial Location Theories Smith Palander YouTube Lecture Handouts

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2 Industrial Location Theories - Smith & Palander

Industrial Location Theories Smith & Palander

Dr. Manishika Jain explains the industrial location theory by Smith and Palander. The details of the theory - Basis, formulation, assumption, criticism are explained candidly in the video.

Smith՚S Theory

  • Basis
  • Assumptions
  • Cases
Theories Smith Palander Images

Assumptions under Smith՚S Theory

Assumptions under Smith՚S Theory

Palander՚S Theory

  • Basis
  • Assumptions
  • Cases
Palander՚S Theory Image-1
Palander՚S Theory Image-2

Weber determines whether two firms will locate together by drawing critical isodopanes around their points of minimum transport costs. If these isodopanes intersect, the firms can gain economies by locating together anywhere within this zone of intersection. Palander points out that while such a move is advantageous to both firms together, it is not profitable for any one firm to move unless it is certain that its partner will behave in the same way. Weber՚s agglomeration procedure requires co-operation from two firms which are locating at the same time.

Palander also argues that each firm desires that the agglomeration be located at that point within the zone of intersection of isodopanes which is nearest to its own point of minimum transport costs that is, the agglomerating firms are in conflict about where to locate the agglomeration, and Weber has not solved this conflict problem.

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