GEOG 106 Lecture Notes - Lecture 12: Northeastern United States, Megacity
Document Summary
Don"t have to worry about raw materials. A. hotelling"s model: used to predict the location of services. Customer and competitor locations affect locational controls for services. A clustered pattern of service locations may occur under one set of conditions whereas a dispersed pattern may occur for another set. A location solution that optimizes revenue for sellers may not be optimal from the point of view of the customers . 2 owners of ice cream stands, x and y, are trying to decide where to locate along a stretch of beach. Suppose further that there are z customers located uniformly along this beach and each customer will buy only from the closest stand. Are concerned primarily about where their customers are located. Need to balance the location of the raw materials with the location where they sell their goods. From the customer"s perspective, they always have an optimal location.
