Cities and marketplaces are central to economic development, but we know little about why such agglomerations initially form. I argue that evolutionary forces select for agglomerations when individuals' desire to spatially coordinate exchange in complex environments. To test this idea, I perform...

We present experimental results from a series of sessions organized using the Power Market simulator; a software designed to realistically replicate the Spanish Electricity Market. In the experiments reported here we compare the status quo to two alternative treatments which represent...

We study the location of more than 1,000 research and development (R&D) labs located in the Northeast corridor of the U.S. Using a variety of spatial econometric techniques, we find that these labs are substantially more concentrated in space than the underlying distribution of manufacturing...