%0 Report
        %A Cai, Xiaoming
%A Gautier, Pieter A.
%A Wolthoff, Ronald P.
        %T Spatial Search
        %D 2024
        %8 2024 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 16824
        %U https://www.iza.org/index.php/publications/dp16824
        %X This paper considers a random search model where some locations provide sellers with better chances of meeting many buyers than other locations (for example popular shopping streets or the first page of a search engine). When sellers are heterogeneous in terms of the quality of their product and/or the probability that a given buyer likes their product, it is desirable that sellers of high-quality niche products sort into the best locations. We show that this does not always happen in a decentralized market. Finally, we allow for endogenous location distributions and show that more trades are realized when locations are similar (in which case the aggregate matching function is urn-ball) but that quality weighted trade can be higher when locations are heterogeneous.
        %K search frictions
%K spatial equilibrium
%K sorting