Agglomeration Density and Business-Customer Matching Öffentlichkeit
Xu, Mingtao (2015)
Published
Abstract
Studies in agglomeration have shown that agglomeration can benefit businesses by enhancing their productivity. In this paper, I examine the relationship between agglomeration density and customers' evaluation of businesses and propose a mechanism that represents a non-productivity benefit of agglomeration. In an urban setting, I argue that when businesses offer differentiated products and services and customers have different preferences, agglomeration of businesses provides customers with more diverse choices, enables them to try different products and services and find the ones that match their preferences the best. The outcome is that customers evaluate businesses more positively. This study uses Yelp data on chain restaurants, users, and reviews to test these propositions.
Table of Contents
Introduction 1
Theory and Hypotheses 4
Empirical Strategy 10
Data 11 Variables and Measurements 13
Methods 25
Results 26
Discussion 28
Additional Studies 29
Concluding Remarks 31
Limitations 32
References 34
Appendix 1. Logics of Business-Customer Matching 38
Appendix 2. Testing Mediation Effects 40
Appendix 3. Review-level Analyses 41
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