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The Use of Game Theory in Regional Economics: a quantitative retrospective

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  • Sandra Silva

    ()

  • Isabel Mota

    ()

  • Filipe Grilo

Abstract

The construction of formal models that deal with space observed a huge increase since the late 1980s. As Fujita et al. (1999) stress, the field of regional economics experienced a revival with the emergence of new analytical tools such as the diffusion of imperfect competition models, networks and mathematical programming. One of the most powerful tools within social science in general and economics in particular is game theory. This methodology allows for the formal analysis of the interactions among economic agents and, therefore, it is particularly useful for the study of economic decisions regarding spatial issues such as the location choices of firms and households; infrastructures, transports and communications; regional and urban policy; innovation and regional development; and regional labour markets. For this reason, a concrete, quantitative systematization of the use of this tool on regional economics research seems to be a relevant topic in the agenda concerned with progress in regional science. In this paper we study research in regional economics and provide a quantitative retrospective of the use of game theory in this field. Our main goal is twofold. First, we intend to categorize the contributions in the use of this analytical tool - by main research subjects, by authors’ affiliations, by journal, etc. - using a bibliometric approach. Second, by analysing co-authoring and using Social Network Analysis, we want to test the existence of structures upon which distinct co-authorship emerges. In broader terms, the results of this research will provide a framework for analyzing the potential use of game theory in regional economics, suggesting new future research directions.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1447.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p1447
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Find related papers by JEL classification:
  • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
  • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
  • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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  1. HAMILTON, Jonathan H. & THISSE, Jacques-François & WESKAMP, Anita, . "Spatial discrimination. Bertrand vs. Cournot in a model of location choice," CORE Discussion Papers RP 846, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. ANDERSON, Simon P. & de PALMA, André & THISSE, Jacques-François, . "Spatial price policies reconsidered," CORE Discussion Papers RP 838, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Alvin E. Roth & Tayfun Sonmez & M. Utku Unver, 2003. "Kidney Exchange," Game Theory and Information 0308002, EconWPA.
  4. Anderson, S. P. & Neven, D. J., 1989. "Market efficiency with combinable products," European Economic Review, Elsevier, vol. 33(4), pages 707-719, April.
  5. THISSE, Jacques-François & VIVES, Xavier, . "On the strategic choice of spatial price policy," CORE Discussion Papers RP 793, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Sandra Tavares Silva & Aurora A.C. Teixeira, 2006. "On the divergence of evolutionary research paths in the past fifty years: a comprehensive bibliometric account," FEP Working Papers 229, Universidade do Porto, Faculdade de Economia do Porto.
  7. Debra L. Casey & G. Steven McMillan, 2008. "Identifying the “Invisible Colleges†of the Industrial & Labor Relations Review: A Bibliometric Approach," ILR Review, Cornell University, ILR School, vol. 62(1), pages 126-132, October.
  8. Alvin E. Roth, 2006. "Repugnance as a Constraint on Markets," NBER Working Papers 12702, National Bureau of Economic Research, Inc.
  9. Backhouse, Roger E., 2000. "Progress in Heterodox Economics," Journal of the History of Economic Thought, Cambridge University Press, vol. 22(02), pages 149-155, June.
  10. Gabszewicz, Jean Jaskold & Thisse, Jacques-Francois, 1986. "On the Nature of Competition with Differentiated Products," Economic Journal, Royal Economic Society, vol. 96(381), pages 160-72, March.
  11. Sandra Silva & Aurora Teixeira, 2009. "On the divergence of evolutionary research paths in the past 50 years: a comprehensive bibliometric account," Journal of Evolutionary Economics, Springer, vol. 19(5), pages 605-642, October.
  12. Ottaviano, Gianmarco I.P. & Minerva, G. Alfredo, 2007. "Thirty-five years of R(S)UE: A retrospective," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 434-449, July.
  13. Coats, A. W. Bob & Backhouse, Roger E. & Dow, Sheila C. & Fusfeld, Daniel R. & Goodwin, Craufurd D. & Rutherford, Malcolm, 2000. "Roundtable: The Progress of Heterodox Economics," Journal of the History of Economic Thought, Cambridge University Press, vol. 22(02), pages 145-148, June.
  14. Roth, Alvin E, 1991. "Game Theory as a Part of Empirical Economics," Economic Journal, Royal Economic Society, vol. 101(404), pages 107-14, January.
  15. Brakman, Steven & Garretsen, Harry, 2006. "New economic geography: Closing the gap between theory and empirics," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 569-572, September.
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