New economic geography — definition?
Study of how spatial distribution affects trade and firm location.
Economic agglomeration — role?
Creates cost savings, innovation, and regional competitiveness.
Spatial distribution of activities — impact?
Affects trade flows, costs, and market access.
Market access — meaning?
Firms' ability to reach and participate in markets.
Trade cost dynamics — trend?
Trade costs have decreased over time.
Market power — characteristic?
Firms can influence prices due to market concentration.
Monopoly vs competition — difference?
Monopoly has one firm; competition has many with limited power.
Location-based cost differences — effect?
Influence firm competitiveness and location choices.
Firm clustering — benefit?
Reduces costs and fosters agglomeration economies.
Market concentration — consequence?
Impacts competition and pricing power.
Firm location decisions — factors?
Costs, market access, competition, capacity, and resources.
Agglomeration effects — benefits?
Cost savings, knowledge spillovers, innovation.
Information asymmetry — effect?
Leads to market inefficiencies and adverse selection.
Market for lemons — illustration?
Shows how info asymmetry reduces market quality.
Strategic expectations — influence?
Shape firms' decisions and market equilibria.
Multiple equilibria — cause?
Arise from expectations and initial market conditions.
Testez vos connaissances avec un QCM de 8 questions sur Economic Geography and Market Dynamics.
1. What does the term 'New economic geography' refer to?
2. What does the term 'location-based cost differences' refer to in the context of firms' geographic decisions?
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