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Papers of the Regional Science Association
Article . 2020 . Peer-reviewed
License: CC BY NC ND
Data sources: Crossref
SSRN Electronic Journal
Article . 2019 . Peer-reviewed
Data sources: Crossref
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The Brexit Game: Uncertainty and Location Decision

Authors: Douglas Silveira; Izak Silva; Silvinha Vasconcelos; Fernando Perobelli;

The Brexit Game: Uncertainty and Location Decision

Abstract

This article aims to analyze the strategic decision about firms location choice faced with the uncertainty surrounding Brexit. We combine Evolutionary Game Theory (EGT) and spatial Agent-based Simulation (ABS) approaches with input-output analysis. Firms are competing in two different sectors: (a) crop and animal production; (b) financial service activities. We separate the European Union in manifold regions and consider the following factors in the decision making: (i) market potential; (ii) productive integration; (iii) labor costs and (iv) displacement cost. Firms assign weights to each of these factors. Our results suggest that in traditional sectors firms tend to seek unsaturated markets. In sectors related to services, the greater the uncertainty, the greater the likelihood that firms will move.

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    popularity
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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
hybrid