Small business and the self-organization of a marketplace

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• 作者：Ke Ding ; Toshitaka Gokan ; Xiwei Zhu
• 关键词：JEL ClassificationD04 ; R12
• 刊名：The Annals of Regional Science
• 出版年：2017
• 出版时间：January 2017
• 年：2017
• 卷：58
• 期：1
• 页码：1-19
• 全文大小：
• 刊物类别：Business and Economics
• 刊物主题：Regional/Spatial Science; Landscape/Regional and Urban Planning; Microeconomics; Environmental Economics; Geography, general;
• 出版者：Springer Berlin Heidelberg
• ISSN：1432-0592
• 卷排序：58

文摘

In many developing countries such as China, the typical marketplace is a cluster of small shops or booths. We investigate an economic model in which circular causality, including search and matching between buyers and sellers, forms agglomeration forces. We find that an authoritative third party that reduces search costs is important in sustaining a large marketplace. However, it is unnecessary to reduce search costs to zero. Finally, the low capital requirement of setting up a firm helps to sustain a large marketplace owing to its increased product heterogeneity.