British location rents: an interpretation of the dual transportation problem for commodity flows

The transportation problem is solved for a number of commodity flow matrices for Britain for 1972. The commodities were selected because of the likelihood of the transportation problem producing a relatively good fit. Commodities were also chosen when it was thought that accessibility was a key location factor. The rationalisation of the interpretation of the dual values as shadow prices and location rents is outlined and, after discussing the merits of alternative means of analysing and presenting the dual values, the distribution of these values are compared with the actual location of industry. Some difficulties and further implications of the approach are suggested.