An Analysis of Private and Public Sector Location Models

Recent models of location are drawn together and compared as to structure, criteria, and constraints. Private sector models are distinguished as those in which the total cost of transport and facilities is isolated as the objective to be minimized. The solution techniques of six such models are discussed. Public sector models are characterized by a criterion function involving a surrogate for social utility and by a constraint on investment in facilities or on the number of facilities. Five models with this format are discussed and compared. The two types of problem, location in the private sector and location in the public sector, are seen to have the same conceptual foundation, but formats which differ of necessity due to our inability to relate social utility to dollar value.