Information technology and product variety in the city: The case of food trucks

Using the food truck industry as the setting, we provide direct evidence for how information technology can complement consumption variety in cities by reducing spatial information frictions associated with locally produced goods. We document the following facts: (1) food trucks use technology to ov...

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Bibliographic Details
Published in:Journal of urban economics 2015-11, Vol.90, p.60-78
Main Authors: Anenberg, Elliot, Kung, Edward
Format: Article
Language:English
Subjects:
Analysis
Consumer behavior
Consumption benefits of cities
Growth industries
Information technology
Restaurants
Studies
Taste for variety
Trucks
Urban areas
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Summary:Using the food truck industry as the setting, we provide direct evidence for how information technology can complement consumption variety in cities by reducing spatial information frictions associated with locally produced goods. We document the following facts: (1) food trucks use technology to overcome a spatial information friction; (2) proliferation of technology is related to growth in food trucks; (3) food trucks use their mobility to respond to consumer taste-for-variety; and (4) growth in food trucks is positively correlated with growth in food expenditures away from home. Taken together, our results illustrate how information technology can provide a meaningful increase in variety for urban consumers.
ISSN:0094-1190
1095-9068
DOI:10.1016/j.jue.2015.09.006