Spatial Characteristics of Markets

1
Spatial Characteristics of Markets

• Spatial Dimensions of Market Transactions
• Incentives for Geographical Transfer of Products
• Price Surfaces

2
Spatial Dimensions of Markets

• Prices vary over space
• trade in surplus production
• Transport - value-adding activity
• resources - marketing margin
• linkage between markets
• Fundamental factors
• comparative advantage
• transportation costs
• Evolution of transportation
• modes of transport
• technological change

3
Transport - Government Policy

• Example Chicago
• Modes Efficiency Technology
• transport specialization
• refridgerated trucks/rail
• Government
• incentives - modes of transport
• taxes
• subsidies
• regulations
• infrastructure
• Examples
• rail deregulation (Crow Rate)
• pasta production

4
Location of processing facilities

• Three considerations
• mass economies in processing
• EOS in processing
• EOS in transport
• Analysing the economies of location
• programming methods
• price surfaces