Rivalry and Learning Among Clustered and Isolated Firms

Boari, Cristina and Fioretti, Guido and Odorici, Vincenza (2008): Rivalry and Learning Among Clustered and Isolated Firms.

Abstract

In this paper explore the relationships between rivalry and geographical proximity at the very level of contacts between individual firms. In particular, we wish to highlight the influence of geographical proximity on rival identification, on the comparison of their knowledge, and on the consequent elaboration of a strategy. In order to reproduce the interactions between firms, we made use of an agent-based model (ABM) where the strategic choices of rival firms are derived from general assumptions on competitive behavior and learning processes. Aim of the model is to investigate the co-evolution of firms' knowledge, strategies and performances. Substantial empirical evidences claim that firms located in geographical clusters are more likely to learn and innovate than isolated firms.

• Item Type: MPRA Paper
• Language: English
• Keywords: Industrial Clusters, Industrial Districts, Knowledge Development, Rivalry
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R19 - Other; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R39 - Other

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