e of exerting significant impacts on location decisions.7
Location theory, among other things, attempts to explain and predict the locational decisions of firms, and the spatial patterns of industry which are the products of the aggregate
__________ 5"Huddling Through," The Economist, 20 December 1986, 73 74.
6I. S. Lowry, Migration and Metropolitan Growth, 6th ed. (San Francisco: Harper and Row, Publishers, 1990), 17.
7P. E. Graves, "A Life Cycle Empirical Analysis of Migration and Climate," Journal of Urban Economics, 6 (1979): 135 147.
locational decisions.8 The initial assumption upon which location theory was based was that entrepreneurs attempted to maximize profits in the context of prices fixed by the market, where they possessed perfect information concerning the relative costs associated with all potential locations. Thus, early location theory explained all locational decisions in the context of differences
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