Optimal Facility Location in a One-Dimensional Spatial Market

This paper analyzes properties of the optimal spatial arrangement of what may be interpreted as a class of public facilities. Optimality is defined as cost minimization. Three different optimality criteria are considered, and for each, the necessary and, sufficient conditions, market area size, and production levels, are derived. The relationship between optimal production levels and number of facilities needed is also considered. Next the results of implementing various pricing strategies are analyzed with emphasis given to marginal and uniform pricing. It is shown that, given certain conditions, all facilities incur operating deficits, given marginal pricing. Estimates on the level of the deficits are derived in terms of location rents. Finally, in the appendix, several important results from other studies are derived as special cases of the basic model.     

Empirical Analysis of a Travel-Time Forecasting Model

The purpose of this article is to analyze empirically a travel-time forecasting model that estimates link travel times on congested road networks. In separate studies by You and Kim, a nonparametric regression model has been developed as a core forecasting algorithm to reduce computation time and increase forecasting accuracy. In this article, the sensitivity of model parameters is evaluated so that the proposed travel-time forecasting model could be utilized in transportation information and management systems such as location-based services and intelligent transportation systems applications.     

Equity and Efficiency in Public Facility Location

In designing a system of urban public service centers, planners should consider both equity and efficiency effects in selecting the size of each center and the spacing between centers. The paper establishes theoretical and operational concepts for evaluating equity and efficiency, as affected by size and spacing alternatives. No objective means exists for determining the relative importance of equity and efficiency, so the decision, ultimately, is subjective. However, theoretical, empirical and simulation evidence indicate that equity is more sensitive than efficiency to the selection of size and spacing, within a wide range of alternatives. This suggests that the equity criterion is important in the design of public service systems, and deserves more attention in the public facility location literature than it has received in the past.     

Microeconomic Formulation and Estimation of a Residential Location Choice Model: Implications for the Value of Time

Abstract We formulate a microeconomic model of residential location choice behavior as an aggregate of the individual behaviors of household members, subject to individual time constraints and a common income budget. A simplified version of the model is estimated from stated preference rank‐order data, yielding a function that may be interpretated as a conditional indirect utility function. We consider Box‐Tukey transformations, segmentation by income class, and a consistent treatment of data at different rank depths using the simultaneous mixed‐estimation method. Measures of the household's willingness‐to‐pay (through rents) for reducing travel times to work and study in the short run, are interpreted as subjective values of time and compared with such values derived from mode choice models. Our results are plausible, and consistent with recent findings showing that the short‐run benefits of transport projects derived by transport models are larger than benefits measured at the land use system.     

The Evaluation of Urban Public Facility Location: An Alternative to Benefit-Cost Analysis

This paper attempts to overcome some specific problems which exist with the use of benefit-cost analysis in evaluating the impact of public facilities. The concepts developed explicitly recognize the importance of the spatial distribution of impacts and the fact that tastes can differ substantially among people. By utilizing the concepts of the generalized environment and of place utility, a more general and valuable conceptual model can be developed which may be useful in preventing much current conflict over public investment decisions. The model has an explicit concern with the problem of equity and is thus only a small step in a growing field of inquiry within geography.     

Welfare Theory,Public Goods,and Public Facility Location

The paper discusses a number of issues that are important to the development of a useful normative “welfare theory” of the public space economy. Attention is specifically focused on theoretical welfare economic models of public goods provided at facilities to which consumers must travel for consumption. The recent analysis of Bigman and ReVelle [2] is subjected to critical scrutiny and found wanting. An alternative, more complex but still very simple, analysis is provided.     

The Theory of Welfare Considerations in Public Facility Location Problems

The paper provides a general theoretical framework for analyzing the locational choice of public facilities from the point of view of social welfare. Spatial interactions of individuals and economies to scale in the public sector are taken into account, and that, in turn, adds another dimension to the set of alternatives facing the decision maker. His choice has to be made by considering size as well as space alternatives for the provision of the public service. The paper presents a theoretical structure for ranking those alternatives.     

The Location Choice of Foreign Direct Investment Within Turkey: An Empirical Analysis

This paper investigates the location choice of foreign direct investment (FDI) in Turkey over the period 1996–2003. Using FDI data at the provincial level and negative binomial model, the empirical evidence confirms that agglomeration economies and information costs are the most important determinants of FDI location in Turkey. Specifically, both foreign and domestic agglomerations and in particular urbanization economies strongly affect the location decision of foreign investors. The results also suggest that foreign investors are attracted to provinces with fast growing market, more educated labour force, high density of road network, greater public investment, milder climate, larger area and better quality of life. On the other hand, the empirical findings show that wage, productivity, labour availability, unionization, sea and air transportation, free zones and instability have no significant impacts on the location decision.     

Explorations and Syntheses of Linear Programming And Spatial Interaction Models of Residential Location

Various “linear programming” models of residential location are explored in some detail. It is then shown that entropy maximizing “sub-optimal” versions of these can be developed, which may be more realistic at typical levels of resolution used for analysis but can still be given some of the interpretations of the programming models. Further, any programming model can be seen as a limiting case of some entropy maximizing model in which some of the parameters tend to infinity. Some empirical tests of both kinds of models are presented, and the limiting relationships are discussed.     

The Strategic Choice of Location and Transport Mode in a Successive Monopoly Model

This work emphasizes the incentives for vertical integration in a spatial model. A downstream monopoly will both strategically increase its transport costs and locate inefficiently relative to its customers. This forces the upstream monopolist to lower its input price rather than permit sales to decline. The excess costs and the inefficient location lower total profit in the vertical stream generating an incentive for vertical integration.