> Why does demand always have to be met in one smallish (geographically speaking) city? The demand is created by that community, located in that area - it is e

> Why does demand always have to be met in one smallish (geographically speaking) city? The demand is created by that community, located in that area - it is endogenous. These communities of people create self-reenforcing network effects. Logically it follows that the supply should be created where the demand is, not just because, well, that's where the demand is - but because it re-enforces this flywheel. Why would you put the supply somewhere the demand isn't?