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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/2622

Title: Networks and Firm Location
Authors: Pontes, José Pedro
Keywords: Location
Vertically-linked industries
Intermediate goods
Networks
Input flexibility
Issue Date: 2006
Publisher: ISEG – Departamento de Economia
Citation: Pontes, José Pedro. 2006. "Networks and Firm Location". Instituto Superior de Economia e Gestão - DE Working papers nº 9-2006/DE/UECE
Series/Report no.: DE Working papers;nº 9-2006/DE/UECE
Abstract: This paper models the decision of vertically-linked firms to build either partitioned or connected networks of supply of an intermediate good. In each case, the locations of upstream and downstream firms are correlated. Input specificity is relatedbothto variable costs (transport costs of the input) and fixed costs (learning costs of the use of the input). When both are low, a connected network emerges and a partitioned pattern arises in the opposite case. In the boundary region, there are multiple equilibria, either asymmetric (mixed network) or symmetric.
URI: http://hdl.handle.net/10400.5/2622
ISSN: 0874-4548
Publisher version: https://aquila1.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=26445
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

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