“…Instead, the decision processes of most firms' location decisions appear to rely heavily on imitation heuristics and threshold rules (i.e., satisficing) that quickly narrow down the consideration set to a handful of candidates, in line with the ideas of Simon (1954Simon ( , 1955, Cyert andMarch (1963), andMarch (1988). Indeed, the biology literature shows imitation to be an adaptive strategy for animals in a number of environments (Noble, Todd and Tuci, 2001;Hutchinson, 2005), just as the social science literature identifies environments where imitation leads to success (Gigerenzer and Selten, 2002;Bosch-Domnech and Vriend, 2003) Concerning the normative focus of this paper, it is useful to recall that spatial agglomeration, or clustering, in the classic Hotelling (1929) model is wasteful, as firms locate in the center to split the market rather than at locations minimizing transportation costs. Hotelling, and later Boulding (1996), generalized the idea of socially wasteful agglomerations to a broad range of social settings.…”