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Yeung-Nan Shieh and Chiou-Nan Yeh
''Transportation rates, monopsony power and the location decision of the firm''
( 2004, Vol. 18 No.1 )
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 transportation rates are a function of quantity shipped and distance traveled, a homogeneous production of degree one does not ensure independence between the optimum location and monopsony power. This result is significantly different from the well-known Mai-Suwanakul-Yeh proposition in the constant transportation case.
Keywords: Firm location
JEL: R3 - Production Analysis and Firm Location: General
J4 - Particular Labor Markets: General
Manuscript Received : Dec 16 2003 Manuscript Accepted : Jan 13 2004

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