A Study on Location Cost of Offices

How The Factors on Social Cost Effect on The Location Cost

Abstract

THIS STUDY IS CONCERNED WITH THE WAY OF ESTIMATING LOCATION COST OFOFFICES IN CITIES． IF WE CALCULATE THE COST WITHOUT SOCIAL FACTORS, THE LOCATION COST IN TOKYO IS THE LOWEST OF ALL CITIES IN JAPAN． THIS SEEMS TO BE A MAIN REASON OF CONCENTRATION OF OFFICES IN TOKYO． HOWEVER, IF WE CALCULATE THE COST INCLUDING THE SOCIAL FACTORS, SUCH AS ABITATION, TRAFFIC CONGENSTION, THE LOCATION COST IN TOKYO BECOMES VERY HIGH． THIS FACT ASSERTS THAT THE CONCENTRATION OF OFFICES IN TOKYO IS NOT PREFERABLE IF COMPANIES MUST PAY THE SOCIAL COSTS．