Least Cost Location Theory

Discipline: Economics

Part of general location theory, pioneered by Prussian landlord Johann von Thunen (1783-1850) and later by German economist and sociologist ALFRED WEBER (1868-1958); least cost location theory posits that agriculture and industry locate their activities as close to their markets as possible, thereby achieving the least cost of transport for the goods they produce.

Von Thunen's hierarchy of activities took the shape of concentric rings around urban centres.

Also see: central place theory, gravity model, Weber's theory of the location of the firm

Source:
P Hall, ed., Von Thiinen's Isolated State (Oxford, 1966)

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