Premium
Cooperation of firms yielding industrial clusters
Author(s) -
Nie Puyan,
Wang Chan,
Lin Likui
Publication year - 2020
Publication title -
area
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.958
H-Index - 82
eISSN - 1475-4762
pISSN - 0004-0894
DOI - 10.1111/area.12632
Subject(s) - cluster (spacecraft) , corporation , evolutionary game theory , industrial organization , game theory , business , evolutionary theory , economics , economic geography , computer science , microeconomics , philosophy , finance , epistemology , programming language
Industrial clusters, exceedingly popular all over the world, play a significant role in economics, and it is very important to further capture them. This paper addresses the formation of industrial clusters with evolutionary game theory techniques. According to evolutionary game theory techniques, cooperation conditions for two firms in two different industries are characterised. Actually, if the evolutionary stable strategy (ESS) is the corporation, an industrial cluster is yielded. We therefore outline the conditions to possibly cooperate in two industries, which give rise to an industrial cluster. This implies the planning practice to encourage the cooperation to establish industrial clusters.