Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers

Colombo L, Dawid H (2014)
Journal of Economic Dynamics and Control 48: 288-307.

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Journal Article | Published | English
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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.
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Colombo L, Dawid H. Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers. Journal of Economic Dynamics and Control. 2014;48:288-307.
Colombo, L., & Dawid, H. (2014). Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers. Journal of Economic Dynamics and Control, 48, 288-307.
Colombo, L., and Dawid, H. (2014). Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers. Journal of Economic Dynamics and Control 48, 288-307.
Colombo, L., & Dawid, H., 2014. Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers. Journal of Economic Dynamics and Control, 48, p 288-307.
L. Colombo and H. Dawid, “Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers”, Journal of Economic Dynamics and Control, vol. 48, 2014, pp. 288-307.
Colombo, L., Dawid, H.: Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers. Journal of Economic Dynamics and Control. 48, 288-307 (2014).
Colombo, Luca, and Dawid, Herbert. “Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers”. Journal of Economic Dynamics and Control 48 (2014): 288-307.
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