Internet Cluster Emergence

Danny Quah

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Internet development holds the promise of transmitting economic value across physical space at zero marginal cost. In such a 'weightless economy', what factors matter for the location of economic activity and thus for economic development? This paper sketches a model of spatial dynamics over a three-dimensional globe, where transportation costs don't matter. The paper develops conditions under which clusters of activity emerge.

Keywords: Distribution dynamics; economic geography; internet; location; space; time; Toepitz; weightless economy (search for similar items in EconPapers)
Date: 2000-02
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0441

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