The Location of Sales Offices and the Attraction of Cities
研究制造商如何在不同城市布局销售办事处，发现固定成本和摩擦成本是选址的关键因素，匹配质量也有影响，知识溢出效应则不确定。
This paper examines how manufacturers locate sales offices across cities. Sales office costs are assumed to have four components: a fixed cost, a frictional cost for out‐of‐town sales, a cost‐reducing knowledge spillover related to city size, and an idiosyncratic match quality for each firm‐city pair. A simple theoretical model is developed and is estimated using data from the Census of Wholesale Trade. The factors emphasized in the home market effect literature, namely, fixed costs and frictional costs, are found to play an important role in location decisions. Match quality also matters. The results for knowledge spillovers are mixed.