مکان شرکت ها تحت ناهمگنی تقاضا

In this paper, we develop an economic geography model in which firms sell product varieties with heterogeneous demands. We show that firms that sell products with higher demand choose to establish their plants in larger countries, which provide better access to the most frequently demanded and valuable varieties. The impact of spatial sorting depends on the skewness of the distribution of demand intensity across varieties. In a model in which only capital moves across regions, demand heterogeneity diminishes the amount of capital invested in larger countries. In a model in which the work force moves across regions, demand heterogeneity is found to eliminate dramatic changes in the location patterns and to result in the asymmetric dispersion of workers rather than their symmetric dispersion or complete agglomeration in a specific region. Gadget timed out while loading

The present paper studies the impact of demand heterogeneity on trade and firm location. Firms sell product varieties with characteristics and uses that consumers value differently. Some firms sell product varieties that are highly demanded, whereas others produce varieties with low demand. Firms are therefore heterogeneous with respect to the intensity of demand for their products and consumers' taste and preference for their products. The role of demand heterogeneity in trade has recently been examined by Baldwin and Harrigan (2011) and Foster et al. (2008), who show that exporting firms quote higher prices than non-exporters. The impact of taste heterogeneity on trade has also been presented by Crozet et al., (2012), who show that Champagne and Burgundy wines are exported in larger quantities, to more numerous regions and at higher prices if they receive better quality ratings by reputed wine tasters (e.g., Robert Parker). However, heterogeneity in taste and demand is also likely to have an impact on firms' location decisions and therefore on the regional composition of industries. The present paper discusses this issue in more detail.

Business studies have emphasized the role of product sophistication in the process of firm clustering. A recent body of trade literature is reviving this issue in the context of firm heterogeneity. The present paper discusses product sophistication and heterogeneity in two regional economic models where either capital or workers move across regions. Specifically, product sophistication is reflected by consumers' heterogeneous valuation of the product variety produced by each firm. In contrast with the trade literature, our paper stresses the role of spatial selection and firm locations rather than the role of export strategies and trade patterns. In our context, larger markets attract the firms that produce the most valuable varieties. The resulting stronger competition in these markets forces firms with lower demands to locate in smaller markets.