Consumption variety and urban agglomeration

Amihai Glazer, Mark Gradstein, Priya Ranjan

Research output: Contribution to journalArticlepeer-review

14 Scopus citations


We consider two types of consumers, who prefer different classes of non-tradable goods. Each consumer's utility increases with the number of different goods available, and increases more with an increase in the variety of goods he prefers. Such preferences can lead to urban agglomerations, concentration of different types of consumers in different cities, agglomeration of industries which use similar types of workers, and investment in facilities which attract more customers of one type over another.

Original languageEnglish
Pages (from-to)653-661
Number of pages9
JournalRegional Science and Urban Economics
Issue number6
StatePublished - 1 Jan 2003


  • Agglomeration
  • Product variety

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies


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