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Next: Modelling local interactions Up: Basic mechanisms Previous: Interactions in the basic

Sources of local interactions?

a) Diffusion - knowledge sharing


displaymath174

tex2html_wrap_inline180 is the set of relevant neighbors of the firm i.

b) Innovation - social dimension: network externalities


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where tex2html_wrap_inline184 is the intrinsic productivity of technology tex2html_wrap_inline186 and tex2html_wrap_inline188 is the number of firms using this technology in the industry tex2html_wrap_inline190

where tex2html_wrap_inline192 is the number of neighbors of i using the technology tex2html_wrap_inline196

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next up previous
Next: Modelling local interactions Up: Basic mechanisms Previous: Interactions in the basic


Sam 18 Oct 09:10:57 DFT 1998