The Isolated State
Quick Summary
Johann Heinrich von Thünen's work, The Isolated State (1826), is a foundational concept in location theory. Thünen imagined a city surrounded by a uniform plain, using this model to explain how agricultural production is organized in concentric zones based on transportation costs.1
He proposed that goods with higher transportation costs or perishability, such as heavy products and dairy, would be produced closer to the city. Lighter, more durable goods, like grains, could be produced further away. As distance from the city increases, land rent decreases, eventually reaching zero. This model also suggested that land closer to the city would be cultivated more intensively due to its higher value and the need for a greater return on investment.21
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