Agglomeration economies
Cost advantages to producers
and consumers from location
in cities and towns, which
take the forms of urbanization
economies and localization
economies.
Urbanization economies
Agglomeration effects associated
with the general growth
of a concentrated geographic
region.
Localization economies
Agglomeration effects captured
by particular sectors of
the economy, such as finance
or autos, as they grow within
an area.