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From Location Choice to Agglomeration: An Analysis Based on Game Theory

In: Proceedings of 20th International Conference on Industrial Engineering and Engineering Management

Author

Listed:
  • Zhen-po Wang

    (Tianjin Chengjian University)

  • Jing-wen Zhang

    (Tianjin Chengjian University)

Abstract

This paper reviews the theoretical models of firms’ site selection based on the different hypotheses, and summarizes the experimental research of firms’ addressing game based on a varying number of firms. Then this paper analyses the Cournot model for two firms’ addressing selection on the basis of game theory. The results show that the factors driving the firms to select and relocate their sites, which include the cost factors related with the distance and the markets. This paper argues that the industrial agglomeration stems from the firms’ striving for the maximization of profits, which may be one possible path from locational choice to agglomeration to formation of regional economic space.

Suggested Citation

  • Zhen-po Wang & Jing-wen Zhang, 2013. "From Location Choice to Agglomeration: An Analysis Based on Game Theory," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), Proceedings of 20th International Conference on Industrial Engineering and Engineering Management, edition 127, pages 1031-1041, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-40063-6_101
    DOI: 10.1007/978-3-642-40063-6_101
    as

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