Classical Plant Location on Networks

The purpose of this chapter is to succinctly review certain classical models for locating production activities on networks. By classical model, we mean one for which the locating firm is either a price taker or a monopolist, so that the analysis of competition is especially simple. Although these classical models are non-equilibrium models, an understanding of their assumptions and mathematical formulations is essential to understanding the equilibrium network facility location models presented in subsequent chapters.