Economic Definition of principle of median location. Defined.
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Term principle of median location Definition: A basic principle of location theory stating that an activity will select the median or middle point of location when selling an output to, or buying an input from, activities located a disperse points. In particular, this analysis indicates that the activity will locate at the median point, with an equal number of attraction points in any direction, rather than the arithmetic average of the distances to all points. The analysis imposes several restrictive assumptions, including a trip to each location, the same transit cost per mile to each location, the same quantity of output sold to, or input purchased from, each location. The principle of median voter is a similar principle that has been developed in the public choice study of voting behavior.