Title :
Firm Location Choice with Technological Diffusion
Author :
Chen, Qianqin ; Fan, Min
Author_Institution :
Sch. of Econ. & Commerce, South China Univ. of Technol., Guangzhou
Abstract :
This paper formulates a three-stage cournot duopoly model on a circular city to investigate firm location choice and firm R&D strategic interaction. Both firms choose locations, make R&D decisions and compete a la cournot. In the presence of spillovers and complementarities of technology innovation, this paper derives two subgame perfect Nash equilibria: a strictly dispersed equilibrium without firm R&D activities and a strictly agglomerated equilibrium with R&D activities by both firms.
Keywords :
facility location; game theory; research and development; strategic planning; agglomerated equilibrium; circular city; firm R&D strategic interaction; firm location choice; subgame perfect Nash equilibria; technological diffusion; three-stage cournot duopoly model; Business; Cities and towns; Costs; Electronic mail; Information management; Nash equilibrium; Paper technology; Research and development; Seminars; Technological innovation; complementarities; cournot duopoly model; location choice; spillovers; subgame perfect Nash equilibrium;
Conference_Titel :
Business and Information Management, 2008. ISBIM '08. International Seminar on
Conference_Location :
Wuhan
Print_ISBN :
978-0-7695-3560-9
DOI :
10.1109/ISBIM.2008.222
