the.com/agglomeration
clumping is a business model: everyone crowds together and somehow all get richer.
means the economic clustering of people, firms, or activity in one place because proximity itself creates value.
from from latin agglomerare, to wind into a ball, like wool onto a spool; economists borrowed the physics of clumping to explain why cities and industries cluster instead of spreading out evenly.
coined economics usealfred marshall described it in 1890, unnamed
three forcessharing, matching, and learning drive the clustering
paradoxrent goes up, yet firms still refuse to leave
opposite forcecongestion costs eventually cap how big clusters grow
for instance
silicon valley — tech firms cluster despite sky-high bay area rents
hollywood — film production concentrated in one la basin since the 1910s
diamond district nyc — 47th street holds most of the us diamond trade
shenzhen electronics — huaqiangbei market supplies parts for global gadget makers