What is locational interdependence?

What is locational interdependence?

When a business depends on geographic proximity to such things as other businesses, attractions or transportation routes to stay in business, and/or its customers want or need the company in a specific area, the parties create locational interdependence.

What is the hotelling’s locational interdependence theory?

Locational Interdependence. Theory developed by economist Harold Hotelling that suggests competitors, in trying to maximize sales, will seek to constrain each other’s territory as much as possible which will therefore lead them to locate adjacent to one another in the middle of their collective customer base.

What is Hotelling’s model of spatial competition?

Hotelling’s spatial competition model is used to explain the existence of sales. It is shown that (1) an equilibrium in randomized strategies exists when a pure strategy equilibrium fails to exist, (2) with more dissimilarity among brands prices are chosen from a wider interval.

What is Hotelling’s theory?

What Is Hotelling’s Theory? Hotelling’s theory, or Hotelling’s rule, posits that owners of nonrenewable resources will only produce basic commodities if doing so can yield more than could be earned from available financial instruments, such as U.S. Treasury or other similar interest-bearing securities.

What is an example of interdependence in economics?

Economic interdependence is a system by which many companies and nations are economically dependent upon each other. For example, North Korea is a nation that does not trade with most of the world; due to its lack of economic interdependence, it’s among the most economically depressed nations in the world.

What is human environment AP Human Geography?

Human/Environment Interaction. The effect that humans have on their environment and the effect that the environment has on humans. Movement. Mobility of people, goods, and ideas across the surface of the Earth.

What is interdependently mean?

: dependent upon one another : mutually dependent interdependent statistical variables …

What is spatial competition geography?

Spatial competition occurs when the amount of space available is inadequate to satisfy existing or expected future wants. For example space for transport or agriculture may be at the expense of space for ecosystems.