search query: @author Gersbach, H. / total: 19
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| Author: | Gersbach, H. Schmutzler, A. |
| Title: | Declining costs of communication and transportation: what are the effects on agglomerations? |
| Journal: | European Economic Review
2000 : OCT, VOL. 44:9, p. 1745-1762 |
| Index terms: | ECONOMIC INTEGRATION COMMUNICATION MARGINAL COSTING |
| Language: | eng |
| Abstract: | The authors consider a two-stage model of locational choice. Firms decide in which of three locations (or countries) to build plants; they then compete in all three markets. Knowledge spillovers reduce marginal costs in agglomerations; through intra-firm spillovers these cost reductions can be exported to other locations. The authors show that improvements in the exchange of information within firms make agglomeration more likely, because knowledge obtained in the center can be transmitted to other locations more easily. |
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