ALMAZAN, ANDRES; MOTTA, ADOLFO DE; TITMAN, SHERIDAN - In: Review of Economic Studies 74 (2007) 4, pp. 1305-1327
This paper presents a theory of location choice that draws on insights from the incomplete contracts and investment flexibility (real option) literatures. Our analysis indicates that the choice of locating within rather than away from industry clusters is influenced by the extent to which...