Internet cluster emergence

Quah, D. (2000). Internet cluster emergence. (CEP discussion paper; CEPDP0441 441). London School of Economics and Political Science. Centre for Economic Performance.
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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.

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