Abstract

Insights into theoretical differences in the spatial landscape between capitalism and the workers' management system can be gained by examining rather simple microeconomic models. Such an analysis shows that since workers' management has an objective function of maximizing income per laborer, the range of a good would be smaller than its capitalist counterpart. The implication is that more numerous firms and communes will prevail over the spatial landscape. Urban Yugoslavia and the rural sector of Israel are used as illustrative cases of workers' management. It is suggested that the theoretics of the locational aspects of workers' management do not correspond to those equilibria of classical location theory.

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