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The Spatial Distribution of Urban Consumer Service Firms: Evidence from Yelp Reviews

Author

Listed:
  • Brad Humphreys

    (West Virginia University)

  • Josh Matti

    (West Virginia University)

Abstract

A growing literature employs distance-based measures of localization to assess the spatial distribution of firms with a focus on manufacturing across a country. We analyze the spatial concentration of a variety of consumer services firms in the Phoenix, AZ area using geo-referenced Yelp data from over 29,000 establishments. Results from a K-density approach indicate substantial localization and service differentiation among localized firms. Firm concentration varies across service cost and quality; higher quality/cost establishments tend to cluster. Our results further understanding of the modern urban landscape as cities are increasingly centers of consumption.

Suggested Citation

  • Brad Humphreys & Josh Matti, 2018. "The Spatial Distribution of Urban Consumer Service Firms: Evidence from Yelp Reviews," Working Papers 18-03, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:18-03
    as

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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1007&context=econ_working-papers
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    More about this item

    Keywords

    localization; consumer services; consumer city; k-density function; spatial concentration;
    All these keywords.

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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