This paper considers a random search model where some locations provide sellers
with better chances of meeting many buyers than other locations (for example popular
shopping streets or the first page of a search engine). When sellers are heterogeneous
in terms of the quality of their product and/or the probability that a given buyer likes
their product, it is desirable that sellers of high-quality niche products sort into the best
locations. We show that this does not always happen in a decentralized market. Finally,
we allow for endogenous location distributions and show that more trades are realized
when locations are similar (in which case the aggregate matching function is urn-ball)
but that quality weighted trade can be higher when locations are heterogeneous.