Agglomeration, Product Heterogeneity, and Firm Entry
Cornell University - Department of Economics; Cornell University - School of Industrial and Labor Relations
Cornell University - School of Hotel Administration
July 10, 2010
Journal of Economic Geography, 12, 2012: 601-626
This paper investigates the interaction between product heterogeneity and geographic agglomeration. Using data for nearly the entire population of U.S. hotels, we examine patterns of entry into different regions among establishments delineated by product segment. We find that to the extent that hotels agglomerate, they are sensitive to the composition and size distribution of other hotels in an area. Our results are consistent with countervailing competition and agglomeration effects that vary in strength across differentiated firms.
Number of Pages in PDF File: 34
Keywords: Agglomeration, Product Differentiation, Entry, Services
JEL Classification: R30, L22, R12, L83Accepted Paper Series
Date posted: July 10, 2010 ; Last revised: May 31, 2012
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