Select 2 questions out of each of the four equally weighted groups (roughly 5 minutes per question, 10 minutes per group)
I(Select 2) Define each concept and either explain how it is used or how it can be used in a location-theoretical discourse:
1. spatial demand curve
2. locational rent function
3. spatial iso-outlay line
4. Market area analysis/ Central Place Theory: Explain the nature of the minimum spatial threshold equilibrium identified by the point of tangency of two functions.
5. Weber's Industrial Location Theory: Explain the locational importance of "weightloss" in the Weberian production process.
6. Hotelling: Explain the locational importance of the assumption of "distance-inelasticity of demand" for the Hotelling equilibrium. AND: What kinds of conditions may lead to such inelasticity?
7. What is the "expected value maximization principle"? Please come up with a very simple example in which you calculate the EV for two locational strategies resulting in two differently high expected values.
8. What is the minimax/maximin (Wald) strategy? Why is this strategy generally considered conservative?
9. How would you characterize a locational decision environment which you have given the label "turbulent"? Identify at least one behavioral response to such turbulence.
10. Why did Kepner & Tregoe, the locational consultants (which Hayter cites), make a distinction between "musts" and "wants" in their decision strategy?
11. Explain the concept of "truncation" (as used in the Hayter text) and its economic-geographic significance.
12. List clearly articulated situations (as many as you can) in which two boundedly rational decision-makers may come up with different location decisions or outcomes for identical economic activities.