Who do cities exist? - Retail agglomeration
6 important questions on Who do cities exist? - Retail agglomeration
What is retail agglomeration?
Which 2 forces contribute to retail agglomeration?
- Desire of shoppers to limit time/cost of shopping trips Variety of purchases
- Benefit of comparison shopping
What is an important difference between the management of shopping streets and shopping malls regarding this externality?
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How to measure retail agglomeration? (Koster, Pasidis)
- Footfall, the number of pedestrians walking through your street
- Number of shops nearby
Why is (retail) rent an important indicator for economists?
Economists like lower prices. But they don't like lower rents. Give 3 reasons why?
- In general, lower prices indicates lower production costs, which is good
- A lower rent may indicate that a location is less attractive, which is bad
- A lower rent may indicate that the supply of shops is increased, which is good
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