Study Of Producer Services Agglomeration Mechanism Based On Game Theory

With China's industrialization and urbanization process accelerating, producer services industries have been gradually become the important strength to promote national economy development with agglomeration economy being the main force. Producer services agglomeration can be seen the result of the location choices for the new enterprise, as the enterprise choosing the location with maximum agglomeration benefits. From this point, this paper study agglomeration mechanism from the respect of location selection.Marshall and Wood put forwarded the proposition that location factors influencing services agglomeration included accessibility, proximity and environmental relevance. From this point, combining industrial agglomeration theories and location theories, we collected five indexes of location factors, consisting of accessibility, proximity, economic environment, business environment and human resources environment. Via utility function comprehensive evaluation method, we calculated the location value of agglomeration area. Then, this paper established game models of the market share between the incumbent and new enterprises to interpret the agglomerate mechanism of producer services.The results showed that, fully rational new enterprises when the location value of producer services agglomerate district is less than 0.31386, can choose to enter the gathering area. Then, it established the game model when the incumbents opening technical standards, and concluded that the location value above 0.8 is helpful for the new enterprises to enter the gathering area. Further, the result of the evolutionary game between the new firms and government indicated that when the location value is between 0.31386 and 0.8, in support of the government, the new enterprises can choose to enter the agglomeration area.