Endogenous Fixed Investment And The Growth Of Regional Tourism

This paper combines the Agent-based Modeling (ABM) computer simulation techniques and the existing findings of spatial economic studies on regional tourism development, so as to establish a dual-destination NetLogo computing model on the basis of a monopolistic competition tourism system with asymmetry. This model enables the paper to discuss the relationship between fixed investment and regional tourism growth by explaining the interact endogenous cycle of the fixed investment, product diversity, tourism market size and profit, as well as the factors which affect the scale of fixed tourism investment in equilibrium. The paper also finds out that the existing model cannot explain the "big-push" in tourism due to a limitation in expressing the external economy of scale. Thus, at the end of the paper we enrich the external economy of scale in the old model via an expression of intermediate input sharing, and successfully use the improved one to explain the "big-push" in tourism.