Strategic Location Choice under Dynamic Oligopolistic Competition and Spillovers

Arbeitspapier

This paper investigates firms' optimal location choices explicitly accounting for the role of inwards and outwards knowledge spillovers in a dynamic Cournot oligopoly with firms that are heterogeneous in their ability to carry out cost-reducing R\&D. Firms can either locate in an industrial cluster or in isolation. Technological spillovers are exchanged between the firms in the cluster. It is shown that a technological leader has an incentive to locate in isolation only if her advantage exceeds a certain threshold, which is increasing in firms' discount rate, in industry dispersion, and in the intensity of knowledge spillovers. Scenarios are identified where although it is optimal for the technological leader to locate in isolation, from a welfare perspective it would be desirable that she locates in the cluster.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 1

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Stochastic and Dynamic Games; Evolutionary Games; Repeated Games ; Innovation and Invention: Processes and Incentives ; Size and Spatial Distributions of Regional Economic Activity
• Thema: Location Choice ; Knowledge Spillovers ; Technological Leadership ; Markov-perfect Equilibrium

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Colombo, Luca ; Dawid, Herbert
• Ereignis: Veröffentlichung
• (wer): Università Cattolica del Sacro Cuore, Dipartimento di Economia e Finanza (DISCE)
• (wo): Milano
• (wann): 2013

Weitere Informationen

• Handle: http://hdl.handle.net/10419/170598
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ