论文信息 - THE MOSES-PREDOHL PULL AND THE LOCATION DECISION OF THE FIRM*

THE MOSES-PREDOHL PULL AND THE LOCATION DECISION OF THE FIRM*

This paper exploits the two-stage approach and the envelope theorem to examine the role of the Moses-Predhol pull in the cost-minimizing location theory of the firm. It shows that the two-stage approach introduces the Moses-Predohl pull into the first-order conditions. The Moses-Predohl pull is shown to be equal to zero through the envelope theorem. These results show why the assertions of Bossert and Buhl (1986) concerning Kusumoto (1984,1985) are incorrect.

Yeung-Nan Shieh | Kelley Pace

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