Industry Clusters Based On Uncertainties

Being an important economic phenomenon,industry clusters dominate the regional characteristics of world economy. The studies on industry clusters are the advanced problems. Though it is normal for us to face uncertainties around,there are still a lot left for us to study,especially the systemic study of industry clusters based on uncertainties.In this paper,we firstly sum up the theories of uncertainties and industry clusters existed in home and overseas, then suggest that the fundamental reason for firms to centralize is to reduce uncertainties. To explain this,Chapter two discuss the uncertainties existed in industry clusters;then in Chapter three and Chapter four,we discuss logically how cooperation and reputation affect the behavior of firms. To further explain how uncertainties influence the location choice,we establish a model adjusted from Hotelling model in Chapter five,and then give some analysis and conclusions. Lastly, we have a discussion about social optimal locations.