Here's what I learned from playing around with the position of a single pickup in a bench mule, pasted from an old thread:
Pickup location changes the overall shape of the EQ curve. Keeping everything else the same, as you slide the pickup toward the bridge, the level of the bottom end of the frequency curve goes down. It's as if you went over to the amp and began turning the Bass knob down. Moving the pickup toward the bridge doesn't turn up the Treble, it just turns down the Bass. It doesn't change the clarity or muddiness or warmth. It just brings down the level of everything on that side of the curve.
That's what pickup location does. It's a way to adjust the bottom end of the overall EQ curve of the instrument. Around the middle of the body, you get the full inherent range of the pickup. Moving towards the neck boosts the bass a little bit. Moving towards the bridge trims the bass.
That's why sliding pickup rail instruments, particularly basses, have never really caught on. It sounds like a cool idea, but once you've played around with pickup position, you'll find that it's easier to get the same effect by adjusting the Bass knob on the preamp or amp. We, the bass builders, play around with pickup position to set the baseline sound of our instruments. But, as a player, it isn't very useful as an adjustment.
My overall philosophy is to build the bass to naturally have a full, wide range, even, and pleasing sound. Give the player everything the bass is capable of. They can then use the amp controls or pedals to trim back parts of the sound to fit the particular situation.
Yeah, yeah, I know all about harmonics. Guitar people go crazy trying to find the perfect pickup location to emphasize the harmonics of a particular key. Electric bass pickups generally have a wider area of sensitivity along the string. The precise location isn't that critical to making harmonics ring. In general, I found that moving most bass pickups around within a 1" range made very little difference.
Most of the arguments about finding the Sweet Spot of pickup position is about exactly replicating the sound of some other bass.