A localization economy can be traced to the desire of individuals to compare products. Individuals may prefer to shop for shoes in a regional shopping mall because they can compare the merchandise in four or five different stores in fewer trips. Firms selling similar products may repel one another under some circumstances, but when consumers have a demand for display variety, similar competing establishments may locate together. An additional shoe store in a regional shopping mall may actually benefit all the shoe stores by making the mall a more desirable place to shop for shoes. The additional store may lower the percentage of mall shoe shoppers who make purchases at each existing store, but total sales may increase due to the greater number of shoppers. Retail establishments selling complementary products may also tend to cluster. For instance, theaters and restaurants often locate together, reflecting the fact that people like to eat out before or after seeing a show.
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