In this article, we simulate the concentration process within the German dairy sector employing a sectorwide optimization model. As a result, we get cost minimizing structures of the dairy sector for various time horizons depending on varying levels of transportation costs. We show that the...

This paper reviews the new economic geography literature, which accounts for the uneven distribution of economic activity across space in terms of a combination of love of variety preferences, increasing returns to scale and transport costs. After outlining the canonical core and periphery...