Discussion paper

DP2293 Internet Cluster Emergence

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.


Quah, D (1999), “DP2293 Internet Cluster Emergence”, CEPR Press Discussion Paper No. 2293. https://cepr.org/publications/dp2293