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

Brad Humphreys and Josh Matti
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Josh Matti: West Virginia University

No 18-03, Working Papers from Department of Economics, 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.

Keywords: localization; consumer services; consumer city; k-density function; spatial concentration (search for similar items in EconPapers)
JEL-codes: L80 R12 R32 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2018-01-29
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